
Dear Sir
I hope you are doing well.
I am seeking your independent opinion on a proposed switch of my existing Bajaj Allianz Goal Assure funds into the Nifty 500 Multicap Momentum Quality 50 Index Fund. My insurance advisor has recommended moving my entire current corpus (~₹10.3 lakh) into this fund gradually at ₹2 lakh per year.
For your reference, here are the details of my current portfolio and SIP plans:
Current Portfolio (as of latest statement):
Fund Name
Current Value (₹)
Bond Fund
83,226.67
Equity Growth Fund - 2
1,88,982.12
Accelerator Mid Cap Fund - 2
36,080.50
Pure Stock Fund II
6,45,281.48
Small Cap Fund
51,194.39
Midcap Index Fund
29,979.86
Total Portfolio Value: ₹10,34,745.02
Current SIP Allocation (₹10,000/month):
Accelerator Mid Cap Fund II: 2,700
Equity Growth Fund - 2: 3,000
Pure Stock Fund II: 2,300
Small Cap Fund: 2,000
Given my long-term investment goal (2035), I would like your expert advice on the following:
The impact on portfolio diversification and risk if I move my entire corpus gradually into the Nifty 500 Momentum Fund.
How this switch could affect the return of charges feature in my Goal Assure plan.
Whether you would recommend a full switch as suggested, or a partial allocation, and why.
Expected volatility and downside risk, especially considering the last 1-year market performance.
Any hidden conditions or costs associated with this switch.
I would greatly appreciate your independent and detailed guidance to help me make an informed decision.
Thank you for your time and expertise.
Ans: Hi Rudolf,
Your current holding funds are not that great keeping in mind your time horizon and funds performance. If you keep investing in these funds, much return cannot be expected. Hence switch is necessary into good performing funds which can easily give you a return of 14-15% on an yearly basis.
The entire shift will definitely come with additional cost and taxes for you to pay but it will be better to shift now and move to better performing funds than keep invested in funds like these.
Funds like Assure Funds comes with very high hidden costs and commissions and there are much much better funds out there for loong term investment. One should never consider investing in funds like these.
However, it would be wise not to consult an Insurance Advisor for your investments. An insurance advisor is completely different from Investment Advisors. You should seek the help of a good professional who can help in choosing funds for your long term portfolio. A Certified Financial Planner (CFP) can help you with this regard.
Hence do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.
Let me know if you need more help.
Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/