I have been investing Rs 25,000 per month in HDFC Standard life unit linked pension fund from January 2008 to May 2012. I have invested Rs 13,25,000 as premium till now. The present fund value is Rs 13,86,523. You can see that the returns are dismal. I have chosen 100 per cent equity option. Should I continue investing Rs 25,000 in Standard life or switch to another fund? Or should I change the 100 per cent equity option?
- Suby Ivatury
HDFC Life Unit Linked Pension Plan belongs to the old category of ULIPs where the lock-in period was three years and charges in the initial year were sky high. Buying a pension plan reflects that your aim is to secure your retirement years. Even though you have borne major portion of the expenses, it is recommended to surrender this policy and invest in New Pension Scheme to save for your golden days. NPS is a Government of India initiative to extend pension benefits. It is the least cost investment tool which allows to invest a maximum of 50 per cent of NPS fund to equity. Depending on your risk appetite and equity exposure required, you may also invest in good equity diversified mutual funds.