My new Portfolio Makeover.. Pls Advice!!

[life2007]

Hi Guys!

I am in process of making a makeover of my Portfolio. I have been investing in MFs since 2008.

Revised Portfolio

HDFC Top 200 : Large Cap
DSPBR Equity : Multi Cap
Reliance Saving Equity : Multi Cap
HDFC Prudence : Balanced
ICICI Pru Discovery : Mid & Small Cap

I have also started some amount to HDFC MIP & Reliance MIP being debt funds and works more better than traditional FDs.

I have done redemption from the following funds and transferring to the above. Some of them are yet to be redemption due lock in periods or not completed 1 year. I will do so gradually.

DSPBR Tiger
SBI Contra
SBI Tax Gain
Birla Tax Relief 96
Sundaram Tax

Experts.. What are your comments please.. I want to make sure I am not wrong anywhere as I want to invest in the above funds for many years to come. Ofcourse I will review my investments once in a year atleast.

Please advise.

Thanks

Jeet

 

[PitBull]

HDFC Top 200 and ICICI Pru Discovery look good to me at the top and the bottom. I am not sure about the other three.
Why a balanced fund if I may ask?
I also am a Gold guy and like to keep some gold (10% - 20%) in my portfolio as a hedge. You should consider it. The way its going now, its not a hedge anymore but and active investment.

 

[life2007]

Hi

Thank you for your response. At last somebody answered my prayers

Ok, I invested in DSP Equity when it was toast of everyone and said to be the best multi cap fund. Right now it is 4 star rated and will keep watch on its performance.

HDFC prudence fund is the best balanced fund in Asia, consistent performer over the years and many times has beat equity funds as well. So I am investing in it.

I started investment in conservative manner and now slowing adding bit aggressiveness to it ie. why the latest edition is ICICI pru discover which is mid-small cap fund.

Yes, gold fund is good idea. Thank you for your suggestions.

REgards

Jeet

 

[nayachora]

Hey good choice of funds...only thing I see is you dont have any ELSS fund ...if you already have investments upto 1 lakh for Sec 80 C, otherwise you can check Fidelity tax.

 

[asterix24]

Hi Jeet,

Your portfolio is excellent!! I do have a view on HDFC Prudence. HDFC Prudence is one of the best funds around. However, its portfolio and management is very similar to HDFC Top 200 which is already in your portfolio. I understand you wish to have a Balanced fund in your portfolio, but duplicating the funds is something you need to consider.

If this sounds sane, do consider other alternatives like RRSF Balanced which may be good additions to your portfolio. Otherwise, its pitch perfect!!

Happy Investing !!

P.S: Y'day I stopped my HDFC Prudence as I too have both the funds in my PF

 

[life2007]

Hi

Thank you for your suggestions.

I did some research about stopping either HDFC Top 200 and HDFC Prudence as you rightly said they have same management. However I thought Portfolio wise they have different type of investing. I was thinking to distrubte evenly among them, for example if I have 5K to invest for either of this funds, why not distribute 2.5 SIP to each of them and also spread over the month. Let us say 1st HDFC 200, then on 10 it will be Prudence and 20th again HDFC 200. Would that make sense.. I still do not feel, I will leave out Prudence over 200. It is so consistent fund over so many years.

OK another question. I have about 2lacs surplus and i want to do SIP to the below portfolio I mentioned earlier immediately. I know and have learnt from this forum that I should not invest at one go, but can I invest in larger sums like 5 or 7K per fund and make sure the 2 lacs is utilised in aboout 2 or 3 months.. I am not so keen to put in debt and do STW, they are so many tax implciations. The equity fund is best for tax treatment.. just stay invested for 1 year and forget about tax. Also leaving this idle in Savings account only means temptation for expenses.. and we all know that.

HDFC Top 200 : Large Cap
DSPBR Equity : Multi Cap
Reliance Saving Equity : Multi Cap
HDFC Prudence : Balanced
ICICI Pru Discovery : Mid & Small Cap

Please advise guys. Do you also think any fund from the above is over lapping with same style of investment folios except 200 and prudence. I tried to study this at value research but I am not good at it. Pls advise.

Thanks

Jeet

Hi Jeet,

Your portfolio is excellent!! I do have a view on HDFC Prudence. HDFC Prudence is one of the best funds around. However, its portfolio and management is very similar to HDFC Top 200 which is already in your portfolio. I understand you wish to have a Balanced fund in your portfolio, but duplicating the funds is something you need to consider.

If this sounds sane, do consider other alternatives like RRSF Balanced which may be good additions to your portfolio. Otherwise, its pitch perfect!!

Happy Investing !!

P.S: Y'day I stopped my HDFC Prudence as I too have both the funds in my PF

 

[asterix24]

Hi Jeet,

I completely endorse your plans on both HDFC Top 200 + HDFC prudence being part of your portfolio. Coming to your proposed portfolio, it looks fine except for your choice of Multi-cap funds.

I would definitely recommend you to have a look at HDFC Equity (One of the best funds around) and Quantum Long term equity. These are 2 of the best funds around and I would definitely recommend switching one or both of your Multi-cap funds for these.

Happy Investing

 

[life2007]

Hi Astreix24

Thank you for your valuable suggestions.

Ok, I have been looking at valueresearchonline about the MFs I have invested in as below:

HDFC Top 200 : Large Cap
DSPBR Equity : Multi Cap
Reliance Saving Equity : Multi Cap
HDFC Prudence : Balanced

What I find in the portfolio is that except ICICI pru Discovery, I find all the funds have alike Sector weighings ie on the top it is Financial, then Energy etc. And when I had a deeper look, I find all the funds have overlapping of the same companies in the list like SBI, ONGC, Infosys, State Bank of India though the % allocated differs.

Sorry to be dumb.. is this correct diversification then? I mean am I overlapping things here? Please advise one more time. After some real layman approach, I am trying to build a correct portfolio and start SIP for 1 whole year before I review them again.

Thanks

Jeet

 

[asterix24]

Hi Jeet,

Most of the funds have similar exposures, similar stocks in their portfolio. You are correct in your observation that there is a lot of overlap. Having said that, we need to consider the fund manager's expertise, when does he/she switch-in and switch-out of sectors and stocks, what is the profit booking strategy etc.

Though the underlying funds are same, these strategies influence the actual returns you derive out of your investments. So it is fine to diversify (not to overdo it) and relax and watch your money grow.

Your strategy of reviewing at the end of 1 year is extremely sound and perfect. Please adhere to the same and you are on your way to realizing your dreams.

Happy Investing !!

 

[life2007]

Hi asterix24

Thanks a ton again. You should be opting for some counselling career.. you write in a manner which lifts spirits of depressed souls

After a cautious approach of being moderate-conservative investor initially , I would want to be bit more on the aggressive as my portfolio is aimed at capital appreciation unless there is twist in the tale.

I have added last month ICICI Pru Discovery for the same purpose and want to add one real aggressive MFs. While I will do is to allocate equal percentage each month to my existing Funds as below.

I will add some % to this new proposed MFs and possibly add lumpsum when market dips each time by a considerably. (I know timing market is not good idea The idea is not to be too much disciplined with this new MF but nevertheless, build a small corpus over extended time period. Need to beat inflation is my thinking behind this proposed addition.

Could you and any other expert give me suggestions for this new aggressive fund. I thought of DSP Micro but I have already DSP Equity, dont want to go with same management again. How about IDFC Small & Midcap Equity? I am fully conscious that these are riskier funds and wont invest blindly.. Any other suggestions please?

My Current portfolio which I want to start SIP on equal basis and forget for 1 year is as below:

HDFC Top 200 : Large Cap
HDFC Prudence : Balanced
DSPBR Equity : Multi Cap
Reliance Saving Equity : Multi Cap
ICICI Prudential Discovery.

As you can see HDFC Top 200 and Prudence will play the core funds and i believe after research they are considerable safe. Then we have DSPBR and Reliance Savings as Multi cap to give some more weightage but again conservative. ICICI Prud recent addition for agrressive.

Please advise

Thanks

Jeet