Dear Policy Holders,
Please refer to my last two posts about fund switching. I have been advising for staying in equity investment through Growth Fund and other such funds to the maximum extent of your risk appetite. The reason was precisely this that the markets were unduly under pressure and were poised for a rebound any time whenever any trigger appeared on the scene. This would not have left any chance to get in to equities in good time as the moves were expected to be fast. This has precisely happened when just after the RBI's move to reduce the CRR by 50bps was welcomed by the markets. This allowed release of Rs 32000 crores to seep into banking system without any cost to banks.
Now since the interest rates have still not been brought down and are expected to be dealt with in the next RBI exercise, the markets are now losing ground. The markets were also helped by international events and global market performance. We are however at a critical juncture due to the forthcoming budget and the political equation change on account of the assembly elections five states. In light of this I would suggest that the equity exposure should be now 65pc for the aggressive and young, 50pc for the moderates and only 40pc for the conservative. The conservatives are advised to keep reducing their exposure by 10pc with every 5pc rise (Nifty is now just above 5400) from here.
With best wishes,
Krishnakumar Khandelwal
Please refer to my last two posts about fund switching. I have been advising for staying in equity investment through Growth Fund and other such funds to the maximum extent of your risk appetite. The reason was precisely this that the markets were unduly under pressure and were poised for a rebound any time whenever any trigger appeared on the scene. This would not have left any chance to get in to equities in good time as the moves were expected to be fast. This has precisely happened when just after the RBI's move to reduce the CRR by 50bps was welcomed by the markets. This allowed release of Rs 32000 crores to seep into banking system without any cost to banks.
Now since the interest rates have still not been brought down and are expected to be dealt with in the next RBI exercise, the markets are now losing ground. The markets were also helped by international events and global market performance. We are however at a critical juncture due to the forthcoming budget and the political equation change on account of the assembly elections five states. In light of this I would suggest that the equity exposure should be now 65pc for the aggressive and young, 50pc for the moderates and only 40pc for the conservative. The conservatives are advised to keep reducing their exposure by 10pc with every 5pc rise (Nifty is now just above 5400) from here.
With best wishes,
Krishnakumar Khandelwal
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