Do you any thing about constant proportion portfolio insurance . can you explain me that.

POSTED BY parul ON November 25, 2011 8:22 pm COMMENTS (3)

3 replies on this article “Do you any thing about constant proportion portfolio insurance . can you explain me that.”

  1. Dear Parul, Similar plans are already available from other insurers also. May I know the reason of opting the plan (or should I say CPPI)? Please read the post of dear Manish on highest NAV product. You may prepare your own CPPI if you have time & discipline.

    Such ins. policies may not offer the desired result.



  2. parul says:

    Hdfc Crest is seems to be based on same strategy and if i am looking for a investment where i get tax benefit with average returns of 7% to 8%.. with min 10 times cover than is it worth to invest in crest or we have any better plan.

    I am looking forward to withdraw money at prevaling nav in aug 2017 considering aug 2017 will the 7th year for declaring highest nav..

  3. jitendra solanki says:

    CPPI or The Constant Proportion Portfolio Insurance (CPPI) is an asset allocation strategy used for structuring capital protection products. In a traditional capital protection funds,the fixed-income exposure provides capital protection through exposure to zero-coupon (zeros) bonds.The rest goes in equity or other risky asset class to provide the returns.The problem with this strategy is that if interest rates are low more money will have to be invested in Zero Coupon Bonds.

    The CPPI strategy overcomes this issue by investing a lower amount in zero coupon bonds. The rationale is that 90 per cent of the capital need not be allocated to bonds to provide capital protection, as investment in risky assets will not lose its entire value in a short period of time.

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