I have a policy, LIC Jeevan Saral (sum assured Rs 5 lakh), for 35 years. I am 30. Should I cancel it and buy term insurance?
-Abhijeet Patil
Investors should opt for term insurance as it is cheap and more beneficial. It carries low premium and more coverage. You can opt for a term policy of similar maturity (Rs 5 lakh) for around Rs 200 per month as premium. When the surrender charge is nil, you may exit the current policy.
I have been investing in Reliance Vision for one year via systematic investment plan (SIP). As you have been mentioning its negative performance, can I switch to Reliance Regular Savings Equity.
-Pramod Mhatre
Reliance Vision, a 3-star fund, has seen both highs and lows in the past. But, it has not been delivering impressive returns, recently. If this is the only fund in your portfolio, then switch to Reliance Regular Savings Equity Scheme. It has a good track record in short history.
Fund Return (%)
1-Yr 3-Yr 5-Yr
Reliance Vision 94.86 11.29 26.40
Reliance Regular Savings Equity 126.18 21.32 -
Equity Diversified Category 99.57 9.27 23.64
As on January 13, 2010
I plan to invest in the Fidelity India Value Fund via SIPs. Is it worth considering.
-Muralidhar
Fidelity India Value Fund was launched in December 2009. An open-ended equity diversified fund, it will invest in Indian and international equities.
However, we advise you to avoid investing in a new fund and look for funds with long, good track history.
I want to rebalance my portfolio by investing in a debt fund. My plan is to invest for at least 10 years. Which debt fund should I select between Canara Robeco Income and Kotak Flexi Debt?
-Rishi
Regular rebalancing helps maintain a debt-equity ratio. Both the funds are good 4/5-star rated. Invest in either.
I have been investing in mutual funds for five years now. Suggest some equity, balanced and debt funds as I would like to open an SIP for 5-6 years. I plan to invest Rs 5,000 across all these funds. I also want to know about Templeton India Pension Fund, I have invested in it.
- S Kolappa Pillai
Since the total amount you plan to invest is small, you can consider two funds. Either an equity and balanced fund or two balanced funds for an SIP of Rs 2,500 each.
For investment in equity diversified funds you can choose from HDFC Top 200 and DSPBR Equity. Two good balanced funds you can check are Birla Sun Life ‘95 and DSPBR Balanced. Among debt funds, look at Fortis Flexi Debt or Canara Robeco Income.
For second part of your query, Templeton India Pension Fund is debt-oriented. It used to be a star performer but its performance has dipped. In 2008, it was in the red with returns of minus 24 per cent, the category average being minus 9.37 per cent. The fund performed well in 2009, but, you have better options to choose from such as HDFC Multiple Yield Plan 2005.
Funds Return (%)
1yr 2 yr 3 yr
Templeton India Pension 7.01 -23.99 28.52
HDFC Multiple Yield Plan 10.31 -2.41 21.84
Hybrid: Debt oriented category 8.81 -9.37 21.76
As on January 13, 2010
