Fund Switching Advice as on 26 May 2010

Dear Policyholders,
  You may have wondered as to why I have not addressed you about fund switching while the markets have been in turmoil of late. The reason is that on one hand I do not attach much importance to Europe's troubles as far as Indian equity markets are concerned and on the other is the fact the funds managers of HDFC SLIC have been doing a great job of taking the value of 'growth units' high even in the kind of market that we see today.
  As a proof of what said about unit values, I may point out to you that 'growth fund (life products) unit NAV was Rs 68.17 on 6 Nov 2009 when the Nifty was at 4800 level and the NAV of the same is Rs. 72.91 on 25 May 2010 when Nifty closed at 4806. This shows the clear advantage of about 6% ie Rs 4.71 per unit.
  Since the Nifty is not at an attractive level and scope of further slide is limited, I am inclined to give the following advice about fund switching:
A) the aggressives should now switch into Growth Fund entirely.
B) the moderates also should now come into Growth Fund entirely.
C) the conservatives should now have their investment in Balance Fund entirely.
  Those who have Wealth Maximiser products should invest in Large Cap Fund Mid Cap Fund.
  I hope you have had very handsome rewards for choosing to opt for HDFC SLIC's ULIPs . Those who have investible funds in hand may buy more such policies before 30 Jun 2010 as there would be longer lock in period for withdrawal of funds. Pension Plan would have no provision of early encashment and would be converted to annuity, however, one third of the corpus would still come to you in cash upon maturity.
  Please feel free for asking for matters specific in your own case.
  Thanking you,
Krishna Kumar Khandelwal