Seeking Suggestion on Fund Allocation

POSTED BY Parag Gupta ON January 14, 2013 6:49 pm COMMENTS (7)

Hi All,

I  donot have knowledge about fund performances and have not been following market closely.Seeking your suggestion about  selection of Fund.

I am holding a HDFC “Young Star Supreme Suvidha” Plan and following is my Portfolio.

Equity Managed Fund II  60%
Growth Fund II    40%

Can you pls suggest if this portfolio looks good or i should opt for any other funds. Would it be a good idea to diversify it more?

Thanks in Advance.

Brgds

Parag

 

7 replies on this article “Seeking Suggestion on Fund Allocation”

  1. Parag Gupta says:

    Thanks Ashal.

    Below is my current allocation.
    Equity Managed Fund II 60%
    Growth Fund II 40%

    I am not very sure what Growth Funds are all about. So would it be a good idea to increase allocation % for Equity Managed Funds?

    Brgds
    Parag

  2. Dear Parag, that’s why I asked for the clarification. To recover your losses against chanrges, please invest bulk of your money in pure Eq. funds of your ULIP.

    Thanks

    Ashal

  3. Parag Gupta says:

    Hi Ashal,
    I have already paid a hefty amount as processing fee and allocation charges in last three yrs so I can not afford to surrender it now. Therefore I am looking for an optimized fund allocation so that I can reap the maximum benefit out of it. Brgds
    Parag

  4. Dear Parag, are you asking to switch within your ULIP funds or are you asking for surrednering your ULIP altogether?

    thanks

    Ashal

  5. Parag Gupta says:

    @ Free Financial Calculators
    Thanks for your reply. I have been holding this ULIP from last 3 years and maturity period is 11 yrs.

    Will go through your website. Seems to be a good starting point for a layman like me.

    Brgds
    Parag

    1. In three years most of the other expenses would have accounted for. So now its just like a balanced fund.Good luck.

  6. You have not mentioned how long you have held this ULIP. ULIP are complicated products but if held over a long period and with intelligent asset allocation it should give good returns.
    although generally not recommend by financial experts if you handle it intelligently it will work well for you.
    You asset allocation resembles a balanced fund and I think you could keep it.
    However first use a goal planner (I have one in my website) and determine how much you need to save for your goal. If you need to save more and if you goal is more than 5 years away you could consider investing in mutual funds.
    You dont need to follow the market to do so.
    You could use this guide to see how to choose a mutual fund

    http://freefincal.wordpress.com/step-by-step-guide-to-choosing-a-mutual-fund/

    Start by choosing a good large cap fund and take it from there.
    Your ULIP can serve as a balanced fund.

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