Investment Related Query

POSTED BY Biswa Singh ON June 26, 2012 11:35 am COMMENTS (5)

I have the following queries (expecting a reply from at least Ashal and Manish):

1. I have a LIC endowment policy of 5L sum assured for 21 year tenure. I have paid premium for 8 years of 2.65L and the bonus accrued is 2.4L. The expected return at maturity is 15L. Now shall i surrender the policy, paid up or continue with the policy?

2. I have started a SIP 3,000 in HDFC TOP 200 MF (large cap). I can invest for long term 10-20 years in it. Please suggest your opinion about this MF and my plan to invest in it.

3. In coming one year i will also start SIP of rs 3,000 each in Mid Cap/Small Cap MF and Balanced/Debt MF. Please suggest 3 popular MF in each category and which one is your favorite.

Any other suggestion welcome. Thanks in anticipation.

5 replies on this article “Investment Related Query”

  1. Ashal Jauhari says:
    June 26, 2012 at 12:22 pm

    Dear BRSingh, Please check what’s the surrender value & what ‘ll be the paid value & decide where you are comfortable. For my personal money for the remaining 12-13Y period, I w’d like to surrender & invest the surrender amount as well as future prem. amount in pure Eq. to overcome the losses arising out of surrender & for the loss of time gone by.

    I’m personally investing my own money in HDFC Top 200. should I say more?

    Instead of giving you any options, my take ‘ll be Quantum Long Term Eq. fund & HDFC MIP Long Term Plan.

    HDFC Top 200 – a large cap fund
    QLTEF – a Multi cap fund
    HDFC MIP LTP – a hybrid fund with 80% exposure to Debt So it fits in between pure Debt & Balanced fund.

    Please share your views.

    Thanks

    Ashal

    Reply
    1. BRSINGH says:
      June 26, 2012 at 8:20 pm

      Ashal thanks a lot for your answer. Yes its good to surrender the policy and invest it in SIP. I would like to ask one more query on the product HDFC MI LTP. How it is different from HDFC Prudence and HDFC balanced fund.

      Reply
      1. Ashal Jauhari says:
        June 27, 2012 at 9:27 am

        Dear BRSingh, HDFC MIP LTP is different for the higher debt exposure. In case of Prudence & Balanced, the Eq. component can not go below 65% for that taxation benefit where as in case of MIP LTP, the Eq. component can not go beyond 25% but most of the time, it’s kept around 20% level. So basically it’s more of a Debt fund with a tint of Eq. in it. For Eq. related returns you are already investing in HDFC Top 200 & QLTEF, so risking more money in Prudence or Balanced does not make sense. This is my personal view only & you are free to go as per your own choice.

        Thanks

        Ashal

        Reply
        1. BRSINGH says:
          June 27, 2012 at 1:09 pm

          You are right Ashal. If I am investing in HDFC TOP 200 and QLTEF then i should NOT opt for any balanced fund rather go with a debt fund. Thanks a lot for your comments. By the way I have sent a friend request to you in face book.

          Reply
          1. Ashal Jauhari says:
            June 29, 2012 at 12:55 am

            Dear BRSingh, the Friend request has been accepted.

            Thanks

            Ashal

            Reply

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