Portfolio review request post Demonetisation market

[invizibility]

Hi everyone,

Having learnt a lot from the masters I have finally nailed down my portfolio to the following based on the following constraints:

* Risk Appetite - Very High for next 2 - 3 years
* Financial goal - Kids and Retirement (Horizon for both 10 - 15 years)
* Will review portfolio once a quarter
* Need to have some liquidity - around 10%

Large Cap           30%
Mid Cap             20%
Small/Micro Cap     25%
Debt.               15%
Thematic - Infra.   10%

My choice of funds are: (Some existing ones are due to old investments):

== Multi Cap ==
Franklin India Prima Plus

== Large Cap (Please recommend one) ==
Franklin India Bluechip Fund
SBI Blue Chip Fund
HDFC Top 200 Fund
Quantum Long Term Equity Fund

== Mid Cap ==
HDFC Mid-Cap Opportunities Fund

== Small/Micro Cap (Please recommend one) ==
Franklin India Smaller Companies Fund
DSP BlackRock Micro Cap Fund

== Thematic - Infra (Old) ==
Franklin Build India Fund

== Debt ==
Franklin India Ultra Short Bond Fund - Super Institutional Plan
HDFC Gilt Fund - Long Term Plan

Please review and provide your valuable feedback

 

[TracerBullet]

Hi everyone,

Having learnt a lot from the masters I have finally nailed down my portfolio to the following based on the following constraints:

* Risk Appetite - Very High for next 2 - 3 years
* Financial goal - Kids and Retirement (Horizon for both 10 - 15 years)
* Will review portfolio once a quarter
* Need to have some liquidity - around 10%

Large Cap           30%
Mid Cap             20%
Small/Micro Cap     25%
Debt.               15%
Thematic - Infra.   10%

My choice of funds are: (Some existing ones are due to old investments):

== Multi Cap ==
Franklin India Prima Plus

== Large Cap (Please recommend one) ==
Franklin India Bluechip Fund
SBI Blue Chip Fund
HDFC Top 200 Fund
Quantum Long Term Equity Fund

== Mid Cap ==
HDFC Mid-Cap Opportunities Fund

== Small/Micro Cap (Please recommend one) ==
Franklin India Smaller Companies Fund
DSP BlackRock Micro Cap Fund

== Thematic - Infra (Old) ==
Franklin Build India Fund

== Debt ==
Franklin India Ultra Short Bond Fund - Super Institutional Plan
HDFC Gilt Fund - Long Term Plan

Please review and provide your valuable feedback

Some Fund managers have said recently that mid/small caps are expensive.
Very High Risk does not mean you will also get very high returns, esp over small 2-3 years time period and at perhaps not cheap prices.

Consider having more more large cap oriented portfolio or simply use Multi cap Funds and let them decide what to do.

Recent article see here, Prashant Jain too had talked of large cap bias now

All of your funds sound good and i think may have done well, some of them i hold too, you just have to pick what you like. Equity : Debt Ratio too is something you have to decide. With a 10 year view you can be aggressive, but make sure to hold through bearish periods and not sell low.

i generally prefer to use funds with very long term record. Anyway, not helping your question, but here are some decent funds

HDFC Equity / HDFC Top 200
Franklin Prima Plus / Franklin High Growth / Franklin Blue Chip
BSL Frontline Equity
IDFC Classic Equity (Long term record of new Fund manager)
ICICI value discovery
Motilal Oswall Funds - highly rated by ST
HDFC Midcap etc

I would prefer not to use Microcap funds now, but you have to decide. Reviewing every quarter will not help much, we are looking for performance over a market cycle or two. Short term under/over performance is not long term indicator. Anyway, read this

 

[travi]

This one is also good for Debt
HDFC High Interest Dynamic Fund (Growth)

Look for dynamic over Gilt. Dynamic debt funds gives flexibility to Fund Managers.

 

[shk161]

My two cents..

== Multi Cap ==
Franklin India Prima Plus -Not sure on multi cap segment

== Large Cap (Please recommend one) ==
Franklin India Bluechip Fund >>>Recommended++<<<<<
SBI Blue Chip Fund >>>Recommended-2nd choice after above one<<<<<
HDFC Top 200 Fund
Quantum Long Term Equity Fund

== Mid Cap ==
HDFC Mid-Cap Opportunities Fund Not sure on this,because have not followed it.

== Small/Micro Cap (Please recommend one) ==
Franklin India Smaller Companies Fund >>>Recommended++<<<<<[/COLOR]
DSP BlackRock Micro Cap Fund >>>Recommended-2nd choice after above one<<<<<[/COLOR]

== Thematic - Infra (Old) ==
Franklin Build India Fund Not sure on this,because have not followed it.


== Debt ==
Franklin India Ultra Short Bond Fund - Super Institutional PlanNot sure on this,because have not followed it.

HDFC Gilt Fund - Long Term PlanNot sure on this,because have not followed it.


Debt would suggest the below.

Kotak Banking & PSU Debt - RP (G) Seniors can provide more insight


Thanks

 

[shk161]

Some Fund managers have said recently that mid/small caps are expensive.
Very High Risk does not mean you will also get very high returns, esp over small 2-3 years time period and at perhaps not cheap prices.

Consider having more more large cap oriented portfolio or simply use Multi cap Funds and let them decide what to do.

Recent article see here, Prashant Jain too had talked of large cap bias now

All of your funds sound good and i think may have done well, some of them i hold too, you just have to pick what you like. Equity : Debt Ratio too is something you have to decide. With a 10 year view you can be aggressive, but make sure to hold through bearish periods and not sell low.

i generally prefer to use funds with very long term record. Anyway, not helping your question, but here are some decent funds

HDFC Equity / HDFC Top 200
Franklin Prima Plus / Franklin High Growth / Franklin Blue Chip
BSL Frontline Equity
IDFC Classic Equity (Long term record of new Fund manager)
ICICI value discovery
Motilal Oswall Funds - highly rated by ST
HDFC Midcap etc

Sir why did you say Midcap is expensive? i want to understand the logic or based on which facts you made that statement? so that I can also gain some knowledge.


And Sir, what is the meaning of market cycle? is it something like 1 quarter of an year or so?

Because Axis Long Term Equity Fund - Regular Plan (G) was showing very good growth in past 2 years and seeing that i bought it.Now after this demonetization i could see it is the most affected and the returns I am seeing is 0.30% from 7-8% before this demonetization.So i am thinking its because of the market cycle analysis and short term performance which made me buy it.


And my all time favorite now is Franklin India Tax Shield (G)

It is the best in all the cases whatever the market is up or down its always consistent.

 

[TracerBullet]

Sir why did you say Midcap is expensive? i want to understand the logic or based on which facts you made that statement? so that I can also gain some knowledge.


And Sir, what is the meaning of market cycle? is it something like 1 quarter of an year or so?

Because Axis Long Term Equity Fund - Regular Plan (G) was showing very good growth in past 2 years and seeing that i bought it.Now after this demonetization i could see it is the most affected and the returns I am seeing is 0.30% from 7-8% before this demonetization.So i am thinking its because of the market cycle analysis and short term performance which made me buy it.


And my all time favorite now is Franklin India Tax Shield (G)

It is the best in all the cases whatever the market is up or down its always consistent.

Midcaps expensive only based on what some Fund managers have said, Cheap vs expensive or value vs growth are not so simple to understand for me as a layman in fundamentals, so i just read views of good people ..

By economic cycle i mean the the general 5 - 10 year periods that go from high growth/capex/High enthusiasm to low growth/capex/overcapacity. Again, this is based on what i read and not necessarily fully understand myself as that will be a lot of study work.

Dont overanalyze funds, if we have Fundmanagers with proven, market beating, record for 10-20 years, there is no need to look at minute things and events.

 

[travi]

We were at near all-time highs a while ago.
A few events and we've corrected just a bit (10% type).
Truth is no one knows the real bottom or next high, and which will come before.
This is a cause of concern for Fund Mgrs.

Use "average rupee cost" method to spread your investments over a 4-6 month period on mid/high risk instruments.

 

[suri112000]

These are my bets now.

BSL Frontline equity
Reliance Liquid Fund Direct plan Dividend reinvestment
Direct Investment in Stocks.

Plan is simple. When market crashes by 30 to 50% from recent highs of last 2 years....my Reliance Liquid Fund should have a descent amount to shift to other two avenues. Otherwise regular investments keep going into all three with a bit of variation as per cycles of the market.

When Nifty PE crashes to 14 or below, Every single paise goes into equities or equity MFs. Highly aggressive mode.

 

[shk161]

We were at near all-time highs a while ago.
A few events and we've corrected just a bit (10% type).
Truth is no one knows the real bottom or next high, and which will come before.
This is a cause of concern for Fund Mgrs.

Use "average rupee cost" method to spread your investments over a 4-6 month period on mid/high risk instruments.

totally agree with you It was the highest and somehow i started feeling like a pro investor:clap: as my portfolio was performing great.

But i think its safe to invest now...specially my portfolio because it came down to around 3% of returns, though there is chance of going more lower but i still feel its safe.

Because it cannot go to negative but can be a loss if it remains at 3% return for 3 years or so. So one can take calculative profitable risk at this stage i guess.

 

[veeracar]

totally agree with you It was the highest and somehow i started feeling like a pro investor:clap: as my portfolio was performing great.

But i think its safe to invest now...specially my portfolio because it came down to around 3% of returns, though there is chance of going more lower but i still feel its safe.

Because it cannot go to negative but can be a loss if it remains at 3% return for 3 years or so. So one can take calculative profitable risk at this stage i guess.

I want to know which is better option for short term:FD,ultra short term debt fund or liquid funds.advantages and disadvantages