Need portfolio check and assesment

[yodlee99]

I dont follow either of these 2 - BSL Equity or SBI Magnum contra. In the last few years, SBI magnum contra has become more like a diversified equity fund, from what I have heard from others. Instead of BSL Equity, try BSL Frontline equity plan A which is managed by the same fund manager but has better alpha and better 3 & 5 year returns. Its true that 1 year returns of BSL equity is better, but go with long term returns.
Use valueresearchonline.com for your search and comparisons. Hope that helps.

 

[blueninja]

I dont follow either of these 2 - BSL Equity or SBI Magnum contra. In the last few years, SBI magnum contra has become more like a diversified equity fund, from what I have heard from others. Instead of BSL Equity, try BSL Frontline equity plan A which is managed by the same fund manager but has better alpha and better 3 & 5 year returns. Its true that 1 year returns of BSL equity is better, but go with long term returns.
Use valueresearchonline.com for your search and comparisons. Hope that helps.

Hello

Can you pls help me in correcitng/balancing my portfolio.
At the present i m investing through SIP in the following Mf :

1) HDFC TOP 200 - 1500pm
2) Reliance Growth - 1500pm
3) IDFC PREMIER EQUITY FUND PLAN A GROWTH - 2000pm

I will like to invest in 3/4 more mf in sector or equlity ( through sip for 1 year amount to be invested is Rs 6000 to be allocated is 3or4 mf ) no debit, as m already investing in RD 2000pm and ULIP 15000y . Can you pls advise if the below is ok

4) RelianceBankingRetail or UTIBankingSectorReg - Rs 2000pm
5) RelianceDiversifiedPowerSectorRetail - Rs 2000pm
6) ReliancePharma or FranklinPharma - Rs 2000pm

Thnk

 

[yodlee99]

Glad to see that you have a nice portfolio that you are currently invested in. Another plus point is that you went ahead and took care of monthly RD of 2,000Rs which is safe and secure... don't even think of touching this!

Regd your equity MF portfolio, I see you have invested in funds 1 to 3 for a total of 5,000Rs pm. Funds 2 & 3 of these are in mid&small cap totaling 3500/5000 = 70% which is pretty large component of risk. Even though these 2 are safe funds, it is the nature of mid&small cap that gives me jitters... they get pulled down pretty fast due to unforeseen circumferences.
I can see clearly that you have developed taste buds towards sector funds... u r thinking about not just 1 or 2 but 3 sectoral funds and incidentally all are in the Reliance group. It is a nice group... however sector funds are sector funds that needs to be kept a close watch. I do have investments in Rel Banking + Div power and their returns are pretty good. However, I invest whenever I have surplus but never SIP into sector funds. Never put in more than 5-8% of total into all the sector funds put together... this is just my funda Invest in a diversified equity fund or in balance funds (like HDFC Prudence) and leave it up to the fund manager to invest into sectors that is a flavor of the season including banking, div power, pharma, Auto, IT etc.

To sum it up all, I would increase investments into HDFC Top 200 (to 3000Rs pm) and add to it Birla SL Frontline Equity Plan A (G) (3000Rs pm) and DSPBR Equity (G) (1500 Rs) and keep the same SIP going on Rel Growth (1500Rs) and IDFC premier equity plan A (2000 Rs). Total 11,000 Rs pm.

 

[It_is_Andrew]

a little confusion.

I had chosen ICICI Pru Discovery for 1500pm SIP - as a small and midcap fund.
But it has exit load for 3 years! and I was also considering IDFC Premier equity which has a higher sip amt limit of 2000 but seems to be a better alternative from stats.
Only thing is that moneycontrol doesn't provide a CRISIl rank to IDFC premier equity.

Which one would be a better option according to you guys?

 

[blueninja]

a little confusion.

I had chosen ICICI Pru Discovery for 1500pm SIP - as a small and midcap fund.
But it has exit load for 3 years! and I was also considering IDFC Premier equity which has a higher sip amt limit of 2000 but seems to be a better alternative from stats.
Only thing is that moneycontrol doesn't provide a CRISIl rank to IDFC premier equity.

Which one would be a better option according to you guys?

I will like to stay with IDFC Premier A , as it is a prerformed consistant .

 

[blueninja]

Glad to see that you have a nice portfolio that you are currently invested in. Another plus point is that you went ahead and took care of monthly RD of 2,000Rs which is safe and secure... don't even think of touching this!

Regd your equity MF portfolio, I see you have invested in funds 1 to 3 for a total of 5,000Rs pm. Funds 2 & 3 of these are in mid&small cap totaling 3500/5000 = 70% which is pretty large component of risk. Even though these 2 are safe funds, it is the nature of mid&small cap that gives me jitters... they get pulled down pretty fast due to unforeseen circumferences.
I can see clearly that you have developed taste buds towards sector funds... u r thinking about not just 1 or 2 but 3 sectoral funds and incidentally all are in the Reliance group. It is a nice group... however sector funds are sector funds that needs to be kept a close watch. I do have investments in Rel Banking + Div power and their returns are pretty good. However, I invest whenever I have surplus but never SIP into sector funds. Never put in more than 5-8% of total into all the sector funds put together... this is just my funda Invest in a diversified equity fund or in balance funds (like HDFC Prudence) and leave it up to the fund manager to invest into sectors that is a flavor of the season including banking, div power, pharma, Auto, IT etc.

To sum it up all, I would increase investments into HDFC Top 200 (to 3000Rs pm) and add to it Birla SL Frontline Equity Plan A (G) (3000Rs pm) and DSPBR Equity (G) (1500 Rs) and keep the same SIP going on Rel Growth (1500Rs) and IDFC premier equity plan A (2000 Rs). Total 11,000 Rs pm.

Hi

Thank for your advise , and of course presenting 2 hidden beauties to me :clap:

Just like to question you over the sector funds, specially with reliance div power . as per the government policies the power sector will be increasing two fold in size . shouldn't we invest in this fund as it will increase 30to40% in 5/7 year time spane.

Also can you pls adviewhy should not we invest in these funds though sip, as putting a lump-sum amount will be disadvantagous to me as these funds are at the peak i.e they are performing very much better then others

thnk

 

[nikrod]

Hi

Thank for your advise , and of course presenting 2 hidden beauties to me :clap:

Just like to question you over the sector funds, specially with reliance div power . as per the government policies the power sector will be increasing two fold in size . shouldn't we invest in this fund as it will increase 30to40% in 5/7 year time spane.

Also can you pls adviewhy should not we invest in these funds though sip, as putting a lump-sum amount will be disadvantagous to me as these funds are at the peak i.e they are performing very much better then others

thnk

Hi blueninja,

If you are so much bullish on power sector. Take exposure to Reliance Diversified Power. But don't allocate more than 15-20% of your portfolio to it.

Note that if power sector shows signs of outperformance, even diversified funds like HDFC Top 200 will take advantage hence it's better to try and avoid sector funds.

 

[blueninja]

Hi blueninja,

If you are so much bullish on power sector. Take exposure to Reliance Diversified Power. But don't allocate more than 15-20% of your portfolio to it.

Note that if power sector shows signs of outperformance, even diversified funds like HDFC Top 200 will take advantage hence it's better to try and avoid sector funds.

Hi Nick

Thanks for your advise one last question relating to allocation . can you pls help me on the following :

I m investing vide SIP for 12 months on the below MF ( i will be renewing it every yearly based on the various conditions ) total amt to be invested in 12 moths is Rs 126000 - period July 2010 - July 2011

I m already investing on the below ( SIP period 12months)
investment period- period July 2010 - July 2011

HDFC TOP 200 --------- 1500pm.............amount allocated 14.28%
Relaince Growth -------- 1500pm.............amount allocated 14.28%
IDFC Premia Gwth A----- 2000pm.............amount allocated 19.04%
RD----------------------2000pm.............amount allocated 19.04%

with the above i will be investing Rs 84000 , and the balance Rs 42000 hv to allocated to new funds . can you pls advise if the below is ok , as i hv yet not initiated the SIP for the below.

Amount i m planning to invest is as follows ( SIP period 7month)
Investment period December 2010 - July 2011

Birla SL Frontline Equity Plan A (G) ---1500pm......amount allocated 8.33%
DSPBR Equity (G)--------------------1500pm......amount allocated 8.33%
RelianceDiversifiedPowerSectorRetail---2000pm.....amount allocated 11.11%
increase SIP for HDFC T 200 & Relaince Growth by Rs500 pm to should i look for some other mf

thnk

 

[nikrod]

Hi Nick

Thanks for your advise one last question relating to allocation . can you pls help me on the following :

I m investing vide SIP for 12 months on the below MF ( i will be renewing it every yearly based on the various conditions ) total amt to be invested in 12 moths is Rs 126000 - period July 2010 - July 2011

I m already investing on the below ( SIP period 12months)
investment period- period July 2010 - July 2011

HDFC TOP 200 --------- 1500pm.............amount allocated 14.28%
Relaince Growth -------- 1500pm.............amount allocated 14.28%
IDFC Premia Gwth A----- 2000pm.............amount allocated 19.04%
RD----------------------2000pm.............amount allocated 19.04%

with the above i will be investing Rs 84000 , and the balance Rs 42000 hv to allocated to new funds . can you pls advise if the below is ok , as i hv yet not initiated the SIP for the below.

Amount i m planning to invest is as follows ( SIP period 7month)
Investment period December 2010 - July 2011

Birla SL Frontline Equity Plan A (G) ---1500pm......amount allocated 8.33%
DSPBR Equity (G)--------------------1500pm......amount allocated 8.33%
RelianceDiversifiedPowerSectorRetail---2000pm.....amount allocated 11.11%
increase SIP for HDFC T 200 & Relaince Growth by Rs500 pm to should i look for some other mf

thnk

With Rel Growth & IDFC Premier, your mid cap allocation is significantly more than large cap. I would suggest you to add Birla Frontline Equity & instead of adding DSPBR Equity allocate that portion to HDFC Top 200 / Birla Birla Frontline.

 

[blueninja]

With Rel Growth & IDFC Premier, your mid cap allocation is significantly more than large cap. I would suggest you to add Birla Frontline Equity & instead of adding DSPBR Equity allocate that portion to HDFC Top 200 / Birla Birla Frontline.

That means total allocation to will be
HDFC TOP 200 will be ( 1500 + 500 + 750 )
Birla Fronline Equity ( 1500 + 750 )
Relaince Growth ( 1500 + 500 )

right ?