Dear Policy Holders,
I last addressed you on 27 Feb 2009 on the subject of 'growth fund' portfolio of HDFC Std Life Ins Co and I had advised earlier in Dec 08 to all ULIP holders that the 'growth fund' pocket was best to be invested in. My one important reason to say that was that the valuations were already reasonable and market could not have declined much in worst of the circumstances and the other was that it would be difficult for any body to catch the bus when there is some good news and people rush to convert cash into equity (includiing MFs and FIIs). The circumstances did get worse in the mean time but Oct 08 lows were not breached. Then the news flows became positive on balance and people rushed for buying equities.
The last fifteen days have been historic and the Sensex is perched at above 10000 and Nifty above 3100 (gaining more than 20 pc). Now should we shy away from keeping investment in 'growth fund', I think not. However, my advice to all classes of people is to just move 25 pc value to 'secured fund' and rest should remain in 'growth fund'
I will be coming back with the required analysis and guidance whenever there is further need to switch funds.
Those who have some investible funds but do not have a ULIP policy to absorb it may contact me with details so that I may suggest a right plan to take care of their needs. Needless to say that the ULIP are ultimate products for all investment and risk cover needs. It is also a must that your financial advisor is capable of studying economic environment and advising rightly. So, choose your advisor first and the plan later.
HariOm,
Krishna Kumar Khandelwal
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