thanks ranjan, right now i am at 10.75 (revision due in october) at hdfc, my loan is above 20 lakhs. i dot see much diff with PnB....

problem is excersize is done overnight and there may be gap down next day, so you may not sell again at prev day closing rate....

thanks ashal

one point about charges. with higher charges (allocation, mortgage, admin etc) the returns would be lesser in ULIP compared to TIPP. I am not paying any entry load and the FMC is vey low in TIPP. In long run, lower FMC makes lot of impact on the total returns. the question is does it outeigh the tax loss (on 2/3 of retrns, you are a senior citizen with less income and probably in lower tax bracket).

also i have HDFC Endoment scheme (2 years back) where the charges are very low compared to the current scheme Plus 2. does it make sense to go for top-up instead of stating a new plan with same fund house. ith top-up, i get the same lower charges with old fund. only issue is i had gone 40 times insurance. if i am vieing this for both insrance and retirement, then its not meeting the need. is it possible to reduce the insurance coverage ? to get more returns ?...

Dear ashal,

I aleay have a ULPP with templeton. I want to add more money for my pension needs and also this SIP with ULPP ends in another 6 months. i have the option of extending it further and/or start a new whole life ULIP with nominal insurance. Can you suggest me a good policy for this ? since you would have already done some research on various charges ....

btw, i also have a ULIP with hdfc

on another note, most of the ULIP have come recently, we dont know their possible return rates in longer periods of bear/bull phases. so far what is the oldest ULIP with reasonable good return ?...

great discussions and excellent point of views from the senior boarders.

i would love to add one more point here on sip or timing the market. i would say both. this is to be done opportunistically and may not work all the time. but you can try out.

when market was at 3800 (nifty), put more money then (online investment from the MF website). this is in aition to SIP. For this you need money at right time and should when to buy. how do you know market was low at 3800, why not wait for 3500 ? this is pure gamble. if market goes down 30-40 % in 6 months time, i consider that a steep drop. same thing on upside

...

dont sell. keep it, expect the price to shoot up soon dring the offer period.

even if you sell now, you wont get anything...

today i bought 20 lots of aug 540 at 3 rs. ready to lose all. but my guess is its a gold mine in waiting...

Dear round rock, during past 1 month, HDFC had increased the home loan PLR 2 times. so at the revision time in oct, ur Interest rate may be around 12-12.5%. Plz. do take notice of the same. Please send a mail from ur ID to my ID. My id is given on my home page here at MMB. I have some other plans to u. alternatively u may send a private message to me here at MMB. Thanks Ashal ...

Dear round rock, In ur earlier message u asked for starting another policy for pension purpose (as per discussion between me & dear VVRK), that's why I advised u to go for the ULEP II from HDFC. On the basis of charges & performance, older ULEP is much better to current ULEP II, hence u may top it up with ur monthly sip. Before starting topup, plz. do convert ur regular prem. mode from annual/HY/qtly to Monthly mode, ar it 'll act like SIP & 'll give better cost averaging. for reduction of Sum assured, first read ur policy document, most probably this info 'll be there. Alternatively u may contact HDFC for the same. As dear VVRK rightly posted it 'll be higher of the 2. Once again i'll say that performance of all these ULIPs yet to be tested under prolonged BEAR phase. As these ULIPs works on sum at risk principal, as & when ur fund value increases, the result 'll be lower sum at risk for ins. co. which '`l`l `mean lower mort. charges for u. Keep this ins. policy's Sum assured with all other Term Plans. During my discussion with Raj (vvrk), I mentioned the tax angle of ULPP, which ultimately leaded us to opt ULIP as pension plans. My original view regarding ULIPs has not been changed. The basic disadvantage of these ULIPs 'll remain of forfeit of ur fund value, in case there is a claim & at the time of claim ur fund value is less than the sum assured. Before jumping in, plz. look every pro & con of these plans. My vote for long term financial planning is still with Term+MF combo. thanks Ashal ...

Dear round rock, The features in HDFC Endowment Plan that you took about 2 years back were good. It is always better to increase your premium or top-up your existing plan rather and taking a new one. The top-up charges are going to be less compared to premium allocation charges of a new plan. Fund houses do give you the option to reduce your insurance cover. There are some clauses though. The minimum insurance cover should be the higher of (0.5 * term * yearly premium) or ( 5 * yearly premium). You might want to speak to your insurance agent to find out if reduction in sum assured is offered by HDFC and by how much you can reduce your sum assured. But before you reduce, I would advise you to check if you are adequately insured. Use the Human Life Value calculators available on the web. I prefer the one from personalfn site. Also please be aware that expense ratio for Templeton India Pension Plan is not less. It is 2.15% which is actually high for a fund that invests 60% is debt. TIPP also has an exit load of 3% if you withdraw before 58 years of age. The following is the comparision that I can think off. TIPP (no entry load), HDFC EP (1% entry load since you are already invested and henced already paid the high first year charges) TIPP (3% exit load before 58), HDFC EP (No exit load) TIPP (2.15% expense ratio), HDFC EP (0.80% FMC) TIPP (Fixed debt equity ratio), HDFC EP (asset allocation possible upto 100% equity and debt exposure) TIPP (LTCG taxes on redemption), HDFC EP (No taxes on redemption if invested for 5 years) TIPP (10.49% 3 year returns), HDFC EP (Equity Fund - 25.09%, Balanced 30 to 60% equity - 15.64%, Balance 15 to 30% equity - 10.08%) So except for the entry load part, HDFC EP scores over TIPP in all other factors. Performance wise to in the past 3 years, HDFC EP seems to be better than TIPP even if we consider the balanced fund with max 30% equity exposure. I would advise you to use your HDFC Endowment plan for your pension needs rather than TIPP. You might want to consider increasing your premium contribution to HDFC Endowment Plan and stop SIP in TIPP. Reduce your insurance component if you think you are adequately insured and do not need the additional insurance cover offered by the ULIP. Please also consult others before you take a decision. A pair of eyes is always better than one. Thanks, Raj...

Dear Round rock, The ULPP with Templeton is known as Templeton India Pension Plan (TIPP). In MFs space only 2 ULPPs r available. 1 is TIPP & another one is offered by UTI, Retirement Benefits Plan (URBP). On the performance basis, TIPP is much consistent & had superior returns to URBP. Regarding Whole life ULIPs or age 75 ULIPs to be used as Pension Plans, I\\`m still researching. Most of the ULIPs r hardly 4-5 years old & that coincides with the great Indian BULL Run. So performance of these ULIPs over prolonged bearish phase is yet to be tested. Once I\\`m thru with my research, i\\`ll definitely post my findings here. On the basis of FMC & mort. charges & 24 free switching option every year, the new ULIP offered by HDFC - Endowment Plus -II may be a suitable option. I repeat \\\\...

How many Boarders have received Letter of Open Offer which has opened to -day? I have not received the same. Boarders please reply if u have received Letter of Open Offer....

after step d. i booked 150 rs loss, i will again sell the option at Rs250. again i covered my 150rs loss and gained back rs 100. so effectively i paid only the brokerage. so after this, even if the steps a. to d. keep on repeating till 5th sept. i have no problem except paying brokerage on trades to regain my position. at step e. option falls to be in sync with sept. spot price, so will the future come in line with spot price. i am good. isnt it ?...

spot will leave futures way behind...