Porfolio rebalance suggestion

POSTED BY Sekhar ON January 30, 2013 11:37 am COMMENTS (8)

Hello Gurus,

After reading Jagoinvestor Financial planning articles and previous questions , decided to redesign my portfolio.

 

I am Sekhar aged 26 years, single and have dependent Parents. Recently moved to Dubai to work for a construction company.

I decided to surrender LIC and Postal endowment policies and planning to take online Term policy. I may not come to India in next one year, Can someone from my family submit surrender forms on my half?

 

If I enroll to Term policy, Health Insurance now, Can I modify nominee details later(like wife name after marriage).

Following are my SIP details and investment details. I am investing in MF for long term goals, please correct if my fund allocation is wrong.

 

HDFC TOP 200à 3000/- ( 1st Week) ,

 

Quantum Long Term Equity à 4000/- (2nd Week),

IDFC Premium Equity à 5,000 /- (3rd Week)

and HDFC TOP 200 à 4000/- (4th Week).

 Investment:

Fixed Deposit 

3,00,000

Gold ETF

1,00,000

HDFC Top 200

   70,000

IDFC Premier Equity

2,25,000

Quantum Long Term Equity

   14,000

EPF Balance

1,50,000

 Emergency  Fund:

IDFC Cash- Super Inst-C (G)

   25,000

Bank Balance

   40,000

 Insurance Policy:

 

LIC Jeevan Anand

30,000 (Per Year Started in 2009)

Postal Life Insurance

12,000 (Per Year Started in 2010)

Thanks,

 

Sekhar.

8 replies on this article “Porfolio rebalance suggestion”

  1. Dear Rakesh, for 5Y period, you may go for a diversified Eq. fund like Quantum Long Term Eq. fund. Although 5Y term is not a long term in Eq. but still you may go ahead. Please be ready for the risk associated with Eq. investing.

    Thanks

    Ashal

  2. Dear Shekhar, when w’d you want to redeem this money of 4K investment?

    Thanks

    Ashal

    1. Sekhar says:

      Hi Ashal,

      I am planning to invest 4000/- for 5 years period.

      Thanks,
      Rakesh.

  3. Sekhar says:

    Thanks for responding FFC and Ashal.

    I came to Dubai for only one year assignment.I thought of saving some premium amount by enrolling online Term Insurance now rather waiting till Dec, 2013 (return to India).So I should present in India for enrolling online term insurance.

    I guess only option I have is continuing endowment insurances till Dec, 2013 and then enroll to term plan.

    From next month on wards will get RS 4000/- from rental property. Could you please suggest best fund to invest.My current MF folio consists of LargeCap, MultiCap and Mid-Small Cap Funds.

    Thanks,
    Sekhar.

  4. Dear Shekhar, please read my reply in addition to what dear FFC has already told you. As you are already out of India & as on date having NRI status, I’m sorry to say but purchasing Term plan from India is not easy. Online plans are strict no-no. Not many insurers ‘ll offer offline plans either.

    Please contact some insurers of your choice from India.

    My personal take ‘ll be to go for a term plan purchased from Dubai.

    Thanks

    Ashal

    1. Sekhar says:

      Thanks for responding FFC and Ashal.

      I came to Dubai for only one year assignment.I thought of saving some premium amount by enrolling online Term Insurance now rather waiting till Dec, 2013 (return to India).So I should present in India for enrolling online term insurance.

      I guess only option I have is continuing endowment insurances till Dec, 2013 and then enroll to term plan.

      From next month on wards will get RS 4000/- from rental property. Could you please suggest best fund to invest.My current MF folio consists of LargeCap, MultiCap and Mid-Small Cap Funds.

      Thanks,
      Sekhar.

      1. Dear Shekar,

        Investing the 4K depends on your goals and when you need the money. Assuming it is for long term and it if for the same goal as your other investments, you can increase your exposure to large-cap funds as that seems on the lower side at present.

  5. You will have to sign the surrender forms yourself and send a letter of authorization along with bearer of the form.

    Health insurance has no nomination. Term policy nomination can be changed anytime, any number of times with different % to different nominees.

    Your funds are good. Your allocation to gold seems on the high side. specific proportions to equity and debt depends on the nature of the goal, time frame, and amount needed etc.

    btw what you want is porfolio restructuring. Rebalancing has a different meaning altogether which you can look up.

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