Dear Policy Holders,
My last advice about switching to 100 per cent growth/equity fund when Nifty was 4550 , has delivered dream returns in a short term. The time has come to be slightly prudent for those who are aggressive. For those who are conservatives or moderates should be slightly more aggressive with their expectations of returns. I say this on account of very special times in the field of equity investments. A slight fear about equity investment in times of normal levels of prices is always there and this is what the aggressive should keep in mind. On the contrary, when the time has come when there is more than 50% possibility of big and broad upward moves in equity universe in not so distant future then it is the occasion to shed the overly cautious attitude and make a bigger opening in the investment edifice for the equity gains to flow in.
With above as back ground I recommend the following about the fund switching (the Nifty closed at 5201 on 31st Dec 09):
- the Aggressive should now switch 40% in to Secured Fund and 60% in to Growth fund.
-the Moderates should switch 60% in Secured Fund and 40% in Growth Fund.
-the Conservatives should be switching 80% in to Secured Fund and 20% in Growth Fund and raise the ratio of Growth fund by 5% every month.
Please stick to above till further advice. The change in environment will remain under my keen observation and the next advice would be promptly coming as soon as there is a need for switching for safety or for gains.
I welcome feedback and offer clarification readily, so you may interact with me at your pleasure.
Wishing you a very rewarding 2010 to all of you,
Krishna Kumar Khandelwal
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