1. I am a 46 years old Army Lt colonel due for retirement in 2017 . My core investment is my provident fund (25k per month). Total balance is about 15 lac. I am not worried about pension and insurance as I am adequately covered by the Army in both. I started investing in mutual funds in 2007. Presently I am invested with 5.5 lac in mutual funds as under:-
(a) BSL frontline Equity G (SIP @5k per month increased from 2k)
(b) DSPBR Equity Ц D 50k
(c) ICICI Pru Infra-D (switched from Pru Dynamic) 38k
(d) IDFC Premier Equity ЦG 58k
(e) Kotak tax Saver-D 30k
(f) Reliance Growth ЦD (SIP @5k per month incresed from 2k) 27k
(g) Reliance RSF Equity-G 28k
(h) TATA Pure Equity ЦG (switched from TATA Indo global Infra) 14k
(i) Reliance MIP one lac
2. I also have a Bajaj Allianz capital unit gain ULIP with 3 premiums paid @40k per year and LIC Jeevan Suraksha pension policy No122 with annual premium of 9752 Rs with last premium in 2017. I also have a LIC Jeevan Surabhi money back policy all premiums paid. I have the following queries:-
(a) Should I decrease my provident fund and increase equity exposure to any bal funds/mip. What are the implications consequent to new tax c ode
(b) Should I continue with my Bajaj Allianz ULIP.
(c) Should I start any other SIP/ fatten up my existing portfolio.
(d) Should I redeem TATA pure Equity for investment in Magnum Contra/UTI dividend yield.
Dear omveer627, Here i`m trying to answer ur queries one by one.
a- In the light of proposed new DTC, there may be adverse impact on ur PF maturity amount but as of now it`s merely a proposal & nothing is concrete. So wait for the clarity from the govt. In between u may decrease ur PF cont. from 25K to 15K & divert this 10K amount into MFs. in ur list of funds there r total 9 funds, out of which only 1 fund is large cap (Birla Fr`line). U have 3 multicap funds Rel. RSF, DSP Eq. & TATA Pure Eq. out of which u should redeem from TATA & invest this amount in HDFC Top 200 & also start a fresh SIP in HDFC Top 200.
As ur Tax saving requirement for 1L under 80C r already over, no need to commit money in any tax saver funds.
IDFC Prem. Eq. & Rel. Growth both r midcap oriented fund. Hence it`s advisable to hold only one of them. Hold IDFC Prem. Eq. * divert ur Rel. Growth SIP into Rel. RSF Eq.
Continue ur IPru Infra, DSP Eq. & Rel. MIP.
b- As of now u had paid only 3 prem. & in all probability u may be at loss or just on break even point. In this case plz. pay at least 2-3 more prem. & then only decide the fate of this ULIP. The reason is simple - Due to frontloading cost structure, the agent & ins. co. had already earned a sizable chunk from ur money & if u want to recover that money, there is no option but to continue for few more prem.
c - Already advised in point a.
d - Already advised in point a.
| NIFTY 
