Updating my NRI status for KYC,mutual fund,stock and other investment?

I have my investment made as indian resident. Now i am planning to register myself as NRI since i moved to US for employment from last year.
Mutual fund,Stocks,savings account,KYC all are created and registered as resident. Now when i ask my banker he is suggesting me to close all this and reopen new account.

I dont want to redeem mutual fund/sell stocks but would like to retain them and update my status alone to NRI. Is that possible?

Should one build mutual fund investment portfolio based on return only?

Is there anything wrong with the idea of investing in those mutual funds which have given highest return in say last 3/5 years? I do not understand why people worry about selecting diversified equity fund or debt fund; about large cap or mid cap fund. After all what matters is the return, so one should select those funds which have proven track records of better returns than others and select those with maximum returns. Is this idea wrong?

Annuity Options under Jeevan Dhara Policy # 891149294?

Thanks for prompt services. My abv policy expires on 19/12/2011 and I have recd a letter from LIC
offering me six options to chose one as per my financial requirements. For more clarity, if I chose Option “E” Guaranteed Annuity for 20 Yrs and for Life thereafter MEANS at present I am 65 and if
I survive for 20 Yrs I will get full annuity and thereafter till I survive. In case of death before 20 years My nominee will get full annuity till his/her death ?
If I choose option “F”, Annuity for Life with return of Purchase price on death. Please explain me
what is “purchase price” and in my case how much purchase price my nominee will get (I have given my policy no. above). Also will you please guide me as to which option will be beneficial – right now
I am 65 years old. Hope you will reply my questions in detail or In case you wish to have a dialogue with me, my cell no. is 9870241383 and landline no. is 26112542.
Once again, thanks for your prompt service which I have received since 1965 till date.
Regards .. Chittaranjan Purqndare