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Primary Articles Inflation Falls to 14.87%

So inflation’s for primary articles (food mostly) down now to 14.87%, and there’s a hope that the crop this year will be good and cut food inflation down further.

Inflation at 14.18%

Still too high, methinks. But let’s wait and see where

Previous Inflation Posts:

  • Varun Parwal says:

    >Hi Deepak,

    I've been following your blog for some time and needed your advice on a ULIP I'd invested in some time back.

    I'd applied for a Max New york LY policy in March 2007 and have so far paid Rs. 1.72L as premium – however, the fund value is only Rs. 1.46L at the moment. Now I want to get rid of this policy and have thhe following options to choose from:

    1) Surrender the policy now and pay 10% of fund value as surrender charge.

    2) Pay premium (another 45k) for this year and surrender post March 2011 (after the policy completes 4 years) – I will then get the fund value less surrender charge of 5%

    3) Continue paying premiums for the next 2 years and then surrender policy after March 2012 – I can then withdraw the entire fund value as of the withdrawal date. Considering the underperformance of this policy, this option does not seem all that feasible.

    Could you help me choose between options 1 & 2? I think I can earn better returns by just investing in an ELSS scheme or even an PF account!

    Many thanks,


  • Deepak Shenoy says:

    >Varun: It will depend on what the charges on teh policy are for year 4 and 5. It may be best to exit after year 5, because the cost is (currently) Rs. 14,600, one year later probably around 10,000 and two years later zero. THe point is – can you get that money by taking the money out and putting it somewhere else? if not, then leave it in, I guess.