MF Portfolio Review

[asterix24]

Dear Friends,

My current investing pattern is as below. There are 2 portfolios, one each for me and my wife.

My portfolio:
BSL Frontline Equity SIP 14%
DSPBR Top100 SIP 9%
HDFC Prudence SIP 14%
HDFC Top200 SIP 14%
ICICI Pru Discovery SIP 9%
Sundaram Select Focus SIP 6%
HDFC Mid-cap Opportunities SIP 9%
IDFC Imperial Equity SIP 14%
DSPBR Microcap Fund 9%

My Wife's Portfolio:
Sundaram Select Focus SIP 16%
Sundaram Select Midcap SIP 21%
Templeton India Growth SIP 21%
Reliance RSF - Balanced SIP 21%
HDFC Equity SIP 21%


As I had indicated earlier, Sundaram Select Focus is nearing the end and I will revisit the same at the end of the term. Please do note that I am a bit adventurous and hence, my portfolio may be skewed towards Mid and Small cap funds which is a well-thought about strategy. I have also experimented with some non-top-notch funds after some research.

Your comments are welcome.

Happy Investing !!

 

[ris]

That's a large portfolio you have got with about equal distribution between large cap, large & mid cap ,& mid & small cap.

You can have a look at Franklin India Bluechip fund instead of Sundaram select focus.

I had a look at few different funds & would like to know whether you have had a look at their performance.

L & MC - Fidelity India growth
M & SC - ING dividend yield
Multicap - Quantum long term equity

 

[asterix24]

Yes, I am planning to invest either into Bluechip or Quantum Long Term Equity once my select focus ends.

Coming to your question, I have analyzed Fidelity India Growth and Quantum LTE and found them to be very good. If you are considering investing into either or both of these, I would advise you to go ahead.

Last but not the least on Mid & Small cap space. I would prefer DSPBR Mid & Small cap, ICICI Pru Discovery or DSPBR Microcap fund in that order of preference. Though ING Dividend Yield is rated equal, my choice is for these 3 and HDFC opportunities as I found them to be much better (reflected in my portfolio also). I would be interested to know if you agree with my thought process

Happy Investing !!

 

[ris]

I suggested Franklin Bluechip since Select focus is a large cap fund whereas quantum long term is a multi cap.

For me ,a fund needs to have at least a five year track record.That's why I didn't have a look at DSPBR microcap & M&SC fund earlier.I just checked them & feel that DSP micro can be avoided with regard to its returns & ranking within its category though DSP small & mid cap has done well.

From the ones you have mentioned , icici pru discovery would be my first choice & rate DSP S&MC & HDFC mid cap opportunities more or less at par with each other.


But my choice of M&SC funds is slightly different.My order of preference would be BSL dividend yield, IDFC premier equity & ICICI pru discovery.Though I am also looking at ING dividend yield as I found it to be giving good returns over the years & has maintained a good ranking within its category.

 

[asterix24]

During the circumstances and situations, I had to revamp my portfolio. I have captured my current holdings for me and my wife along with the new SIP plan from our individual accounts.

Existing Holdings: ME
BSL Frontline Equity 13%
DSPBR Microcap Fund 4%
DSPBR TIGER 9%
DSPBR Top 100 3%
HDFC Equity 2%
HDFC Mid-cap Opportunities 5%
HDFC Prudence 12%
HDFC Top 200 6%
ICICI Pru Discovery 6%
IDFC Imperial Equity 9%
Kotak Opportunities 9%
Sundaram Select Focus 12%
UTI Infrastructure 10%

Existing Holdings: My WIFE
Franklin Inda Bluechip Fund 4%
HDFC Equity 13%
HDFC Prudence 18%
Reliance Regular Savings - Balanced 12%
Sundaram Select Focus 30%
Sundaram Select Midcap 12%
Templeton India Growth 12%

Current SIP PLAN - ME:
Large Cap DSPBR Top 100 13%
Large Cap IDFC Imperial equity 20%
Multi Cap HDFC Equity 20%
Large & Mid Cap HDFC Top 200 20%
Mid & Small Cap ICICI Pru Discovery 13%
Mid & Small Cap DSPBR Microcap 13%


Current SIP PLAN - My WIFE:
Large Cap Franklin India Bluechip 20%
Multi Cap HDFC Equity 20%
Large & Mid Cap Fidelity India Growth 20%
Mid & Small Cap IDFC Small and Mid cap 20%
Balanced HDFC Prudence 20%


As always, your recommendations, views, suggestions are welcome.

Happy Investing !!

 

[ris]

Hi Asterix,

Any particular reason for not including IDFC premier equity fund ?

 

[asterix24]

Hi Ris,

It is my mistake that I didn't invest into IDFC Premier Equity Fund. I had planned for an initial investment and subsequent SIP. However, I missed the investment window and hence, I am unable to invest into this fund. I will definitely add this fund whenever it opens for subscription again.

Happy Investing !!

 

[yo!]

While you are doing good, some additional points to keep in mind :

Most important fact is, it is not necessary to have different funds in your portfolio and that of your family members. It may only help you in comparing, which one is doing better than the other. If you choose good funds to start with, and also monitor their performances regularly, then you could have the same funds appearing in your portfolio as well as your wife’s.

If you are 32 years of age, you can have more investment in Equity Large Cap. People around or above 50 should opt for balanced funds.

Many times, people use the nomenclatures, without really knowing the meaning thereof.

Funds like DSPBR Top 100, BSL Frontline Equity and HDFC Top 200 are Equity based funds in Large & Midcap stocks.

Funds like HDFC Prudence and HDFC Balanced are Equity oriented Hybrid Funds. Actually, the balanced funds are expected to have 20% of ‘Debt’ and 80% of Equity. Some funds don’t follow this 20% norm and call the fund Hybrid.

Funds like Sundaram Select Midcap, DSPBR Microcap & DSPBR Small & Midcap have only Midcap and Small cap stocks.

Ideally, one should not have more than 5 funds in his portfolio. For example, buying DSPBR Top 100 AND HDFC Top 200 does not make sense. One should choose one of these two funds. That is a must for every portfolio. But at 32, you could consider both.

Choose one Fund for Midcap & Small cap, and the other two funds could be balanced/diversified.

Because of the ups and downs in the stock markets, it is essential that the performance is judged on yearly basis and not on daily/weekly basis.

If some fund is found to be lagging, the SIP in that fund could be stopped when this happens and another fund could be considered. At a later stage, the fund that is stopped could be sold and the amount is re-invested in the new fund that has taken it’s place.

About 6-8 years ago, the three HDFC Funds mentioned above were doing good and are doing good even today. But the Frankline Prima Fund that was doing good then, is not upto the mark for last 2-3 years. I am sure that all those who had then invested in Frankline Prima Fund must have come out of it, but may have continued with the HDFC Fund that they are holding in their portfolio.

The best place to check the details of any and every mutual fund is valueresearch dot com, where one can make as many as six portfolios for oneself and check the nav each day.

 

[asterix24]

Hi Yo!,

Thanks for all the kind words.I do understand the different aspects of investing, fund selection etc and my choices are based on pure financial logic.

I will elaborate on one point of having a separate portfolio for both of us. We are a working couple and in our industry, there is very little guarantee for job. Hence, to ensure that as a family we continue our investments, we have investments planned out of our individual accounts. This way, if we face any surprises like job loss (already happened once), then it's easier to control the investment plans.

Do let me know if you wish to know more about the reasoning behind my portfolio choice?

Happy Investing !!

 

[ris]

Hi Asterix,

I am sure you must have taken a look at the returns of IDFC imperial equity fund since you have been investing in it for quite some time now.I see that it's return for the past one year has not been in line with the rest of the large cap funds.What's your view on that?

Same holds true for the DSPBR Microcap fund too.