Dear Policy Holders,
Its time to take stock of situation in Indian equity markets and readjust out funds in different pockets. The Nifty as also other indices have seen good run up during the month of August '10. Although at this time in the year we should be getting readied to fully invest in equities as the period beginning after Ganesh Chaturthi or Dussera moves the markets up due to release of money in the hands of businesses along with profits, part of which finds way back in to govt coffers by the end of Financial Year. The floating surplus pushes up the demand for investible securities including equities. The insurance companies sell more policies in the six month of Oct-Mar. The ULIPs remain the most preferred option. All this augurs well for the markets but I am going to advice in a reverse way, due mainly to the disturbing factor of down moves in foreign markets on one hand and due to Indian markets being at three year high at this wrong point during the year which sees some downward pressure usually. Since some thing has not happened in an ordinary way, we have also to be slightly more cautious. I therefore advise you to do the following :
a) the aggressive should park entire fund value in Balance Managed Fund.
b) the moderates should get there funds into Defensive Fund.
c) the conservative should be opting for Stable Managed Fund only.
As per the IRDA guidelines, newer products will be announced by HDFC SLIC as also other companies wef from 1 Sep 2010. After studying them, I will give you my assessment and tell you merits of the same.
Thanking you,
Its time to take stock of situation in Indian equity markets and readjust out funds in different pockets. The Nifty as also other indices have seen good run up during the month of August '10. Although at this time in the year we should be getting readied to fully invest in equities as the period beginning after Ganesh Chaturthi or Dussera moves the markets up due to release of money in the hands of businesses along with profits, part of which finds way back in to govt coffers by the end of Financial Year. The floating surplus pushes up the demand for investible securities including equities. The insurance companies sell more policies in the six month of Oct-Mar. The ULIPs remain the most preferred option. All this augurs well for the markets but I am going to advice in a reverse way, due mainly to the disturbing factor of down moves in foreign markets on one hand and due to Indian markets being at three year high at this wrong point during the year which sees some downward pressure usually. Since some thing has not happened in an ordinary way, we have also to be slightly more cautious. I therefore advise you to do the following :
a) the aggressive should park entire fund value in Balance Managed Fund.
b) the moderates should get there funds into Defensive Fund.
c) the conservative should be opting for Stable Managed Fund only.
As per the IRDA guidelines, newer products will be announced by HDFC SLIC as also other companies wef from 1 Sep 2010. After studying them, I will give you my assessment and tell you merits of the same.
Thanking you,
Krishna Kumar Khandelwal
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