Mutual Fund Portfolio Help

[kram1971]

Since we are talking of next 3-5 years, these are the funds which I could suggest:

- HDFC Top 200 (large cap)
- Reliance Growth
- IDFC PRemier Equity Plan A (it is so popular, they no longer accept lumpsum payment, only SIP is permitted)
- ICICI Discovery
- Infrastructure fund (ICICI / Reliance - take your pick)
- Birla Sun life Mid Cap Fund

- Do not choose more than 4-5 funds for an amount of 5 lakhs.

I have opted for dividend payout as a strategy to rebalance. Whenever dividends are paid out, I take that money and invest in sectors based on changed macro / micro economic situations. All the dividends I have received over last 3 months (HDFC Top 200, BSL Mid cap, DSP BR Equity) are parked in a debt fund now and I am hoping to go aggessive on Infrastructure and Hospitals (I am considering a PE fund for hospitals)

Rgds

 

[nikrod]

Excellent rebalancing strategy nikrod! Which debt funds do you suggest?

Regards,
Rakesh

I would suggest Fortis Money Plus & JM Money Manager Super from Liquid+ category. These funds aim to provide ample liquidity along with better returns than that of pure cash - liquid fund.

For Medium to long term Canara Robeco Income, Birla Dynamic bond, Fortis flexi Debt & ICICI Pru Long Term are excellent funds.

 

[nikrod]

I have opted for dividend payout as a strategy to rebalance. Whenever dividends are paid out, I take that money and invest in sectors based on changed macro / micro economic situations. All the dividends I have received over last 3 months (HDFC Top 200, BSL Mid cap, DSP BR Equity) are parked in a debt fund now

Yes dividend payments can be used for profit booking. But it leaves the strategy in fund managers hands. It also cannot be customized as per individual's asset allocation needs.

Bear in mind that since dividends on equity funds are tax free, this strategy would be more tax efficient (unless funds are sold after holding for more than 1 year). So choose wisely while selecting between dividend or custom-asset-allocation strategy and take taxation into consideration.

 

[saisub]

I have compiled 50 superstar funds across mutual fund categories. YThese were analyzed over different time periods. These are quality and high performing funds. See attached Excel file.


Thanks.
Sai