Fund Switching Advice on 17th Sept 2014

Krishna Kumar Khandelwal
Dear Policy Holders,
Since my last advice I find today its time to become cautious regarding your exposure in equities under the unit linked plans.
My advice now it to restrict equity exposure up to just 30% of the fund total fund value and more conservative among you may now stay entirely in to debt funds.
The Nifty has been hovering for some time around 8000 and think that risk reward ratio is not favorble over the next one year at least.
Thanking you,
Krishna Kumar Khandelwal

Fund Switching Advice on Diwali 2012

Dear Policy Holders,

Wish you a very happy Diwali.

I also take this occasion to suggest by way of fund switching advice in respect of the policy funds held by you. There has a very turbulent year gone by. The political development as well as economic and financial developments, here and abroad, have been quite unnerving but by God 's grace those who have been following the advice coming to you through this site has kept you in good stead. Its time to be slightly bolder now for decent gains in coming two years or so. I would now suggest the following:

-the aggressive amongst you may now keep switch 80% of fund in to Growth Fund/Equity Fund and rest in Secured Fund.

-the moderates require it to maintin in ratio of 60% in Growth/Equity Funds and 40% in Secured/Stable Funds.

-the conservative and older people should be staying in Growth/Equity Funds to the extent of 40% and rest in Secured/Stable Funds.

You may have noticed that markets in India have shown pretty good strength at lower levels, in this light we may expect that down ward pressure from this level of markets will be only limited.

Wishing you all best,

Krishna Kumar Khandelwal

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