Fund Switching Advice - 29 Oct 2008

Dear Policy Holders,

There has been a very bad fall in the world's indices and the volatility is continuing. My advice on 4 Aug 08 may have been followed and also my assessment of situation on 9 Oct 08 may have been seen. I am pleased that you may have had no anxieties during the period that followed. I may now tell you all to be only in 'Growth Fund' till further advice. There has been bench-mark interest rate reduction by banks all over the world. The Asian markets have therefore shown good upward move this morning while Indian market were closed.

As a further point that is in favour of the Equity preference is the fact that the HDFC SLIC fund managers are doing a good job. The Growth Fund Unit (ULEP/ULYS) has dropped by only 7.36% between 31/07/08 and 30/09/08 (from Rs 57.70 to Rs 53.45) while the NIfty lost 9.48% during this period (from 4332 to 3921). This trend is expected to continue and over the long term, it will add real value to your funds. Historically, between Jan 2004 when the Growth fund unit price was Rs 20/- has become Rs 38.47 on 29/10/08 (gain of 92%) while the Nifty has advanced from 2000 in Jan 04 to 2697 on 29/10/08( gain of 34.85%). The out-performance by HDFC SLIC is clearly evident.

As the market today is down due to excessive selling by FIIs and does not reflect the real strength which is far higher, it is the time when you may have extra advantage which is available only rarely.

I would invite the NRIs to come forward and have the savings and investments taken care of by HDFC SLICs policies along with meeting the risk cover requirements and tax shelter.

You are all welcome to send your financial particulars, present portfoio details, job details and family structure as also your aspirations and goals, I will send you a free written assessment of the same along with information about the required change etc. You will also know where you are incurring higher costs etc. and where the leakages may happen.

Wishing happy Diwali and prosperous new year,

HariOm,
Krishnakumar Khandelwal