Change of funds in my MF Portfolio. Please help!

[life2007]

Hello Mr. India, Vicky and other gurus...

It is period of review for my portfolio, I have just 2 more SIP instalments and would like to change few of my funds which has not performed so well in the last year's disaster.

Here is what I am following now:

1) DSP BR Equity = 1K each month / Periodical small lumpsum investment
2) DSP BR TIGER = -do-
3) HDFC Prudence = -do-
4) SBI Magnum Contra = Periodical lumpsum investment only
5) SBI Magnum Tax Gain = - do-
6) Sundaram Tax Saver = -do-


I would like to change to the following for the next 6 months

1) DSP BR Equity = 2K each month
2) SBI Magnum Contra = -do-
3) ICICI Pru Infrastructure = 1K each month
4) Birla Sunlife Frontline Equity = -do-
5) SBI Magnum Tax Gain = Lumpsum = If required for tax
6) Sundaram Tax Saver = Lumpsum = If required for tax

I am replacing DSP TIGER which is related to infrastructre with ICICI Pru Infrastructure. I am also replacing HDFC Prudence which is balanced fund to a large cap fund ie Birla Sunlife Frontline Equity.

Kindly advise if I am thinking on right lines or I am unknowingly commiting some blunder. Even if I am not making any mistake, please be free to suggest better funds if required.

Thanks & Regards

Jeet

 

[life2007]

Hmmm

No Takers for my query ?

Seems it is indeed a deep recession. Vicky, Mr India... seems to be reading this forum only once in a while or else I would have got reply by now ...

Just Kidding

Bye

Jeet

 

[bandlab2]

Hello Mr. India, Vicky and other gurus...

It is period of review for my portfolio, I have just 2 more SIP instalments and would like to change few of my funds which has not performed so well in the last year's disaster.

Here is what I am following now:

1) DSP BR Equity = 1K each month / Periodical small lumpsum investment
2) DSP BR TIGER = -do-
3) HDFC Prudence = -do-
4) SBI Magnum Contra = Periodical lumpsum investment only
5) SBI Magnum Tax Gain = - do-
6) Sundaram Tax Saver = -do-


I would like to change to the following for the next 6 months

1) DSP BR Equity = 2K each month
2) SBI Magnum Contra = -do-
3) ICICI Pru Infrastructure = 1K each month
4) Birla Sunlife Frontline Equity = -do-
5) SBI Magnum Tax Gain = Lumpsum = If required for tax
6) Sundaram Tax Saver = Lumpsum = If required for tax

I am replacing DSP TIGER which is related to infrastructre with ICICI Pru Infrastructure. I am also replacing HDFC Prudence which is balanced fund to a large cap fund ie Birla Sunlife Frontline Equity.

Kindly advise if I am thinking on right lines or I am unknowingly commiting some blunder. Even if I am not making any mistake, please be free to suggest better funds if required.

Thanks & Regards

Jeet

my preference would be

DSPBR Top 100
IDFC Premier Fund
HDFC Top 200
Kotak 30
Sundaram Select Focus
Relaince Growth

 

[life2007]

Hello! Thanks for your suggestion!

I just thought of one more query!

Most experts say one should have just 4-5 funds in MFs. i.e One's portfolio should not be too large. Now suppose, I decide to change all my existing 4-5 funds due to poor performance and introduce another set of 4-5 MFs wont that make my portfolio extra large? I mean I am not going to sell the existing hold of my old MFs.. It is just that I am not going to further invest in those funds but go for completely new funds...

Experts! Enlighten me

Regards

Jeet

my preference would be

DSPBR Top 100
IDFC Premier Fund
HDFC Top 200
Kotak 30
Sundaram Select Focus
Relaince Growth

 

[mrindia]

Hello Jeet!
Due to exhaustive professional bindings, I cud nt visit traderji 4 a long time!
My comments r;
1) Only 1 ELSS wil b enough. I wil go 4 sundaram tax saver.
2) Its OK to exit from HDFC Prud especially if one has separate debt investments like FDs, PPF
3) Stick 2 DSP BR TIGER if u still want some sectoral exposure, o'wise no need for such exposure for coming months.
4) Choice of BIRLA SL FL Eq is nice. Try to make it 2k/mo. Alternative is DSP BR Top100.

When u r in process of re-adjusting ur portfolio, fund number may increase in this transient period.

Happy investing!
mr india

 

[bandlab2]

Hello! Thanks for your suggestion!

I just thought of one more query!

Most experts say one should have just 4-5 funds in MFs. i.e One's portfolio should not be too large. Now suppose, I decide to change all my existing 4-5 funds due to poor performance and introduce another set of 4-5 MFs wont that make my portfolio extra large? I mean I am not going to sell the existing hold of my old MFs.. It is just that I am not going to further invest in those funds but go for completely new funds...

Experts! Enlighten me

Regards

Jeet

why you dont want to sell the old funds that are not doing well? in MF it always makes sense to sell laggards and move to best performers. dont think of losses, think future losses.

have a core potfolio of 4 funds
add one midcap
add one tax save
add one theme fund.

thats all !!!

btw, you can invest in Nifty Bees as well

 

[life2007]

Right Mr. India.. Glad to know you are busy in this recession period

Thanks once again for your valuable suggestions.

Ok, I will stick with the following :

1) Sundaram Tax Saver : ELSS
2) Magnum Contra
3) DSP Equity
4) Birla Frontline Equity

So, now no more further investments in HDFC Prudence and DSP Tiger.

I understand, fund number may increase in transistion period. My point is bit different....For example, I am not going to sell HDFC Prudence or DSP Tiger right now. I am only stopping it and going for new funds. Now I am adding 2 more funds. So wont that make the portfolio swell ? What is the logic behind in people advising to have only 4-5 funds in their portfolio. I am sure just to trim the size, you dont sell blindly. I would definitely wait for the markets to improve or may be I will just 'hold' on the old funds without adding further money it if I dont require any cash.....So I am confused


Thanks

Jeet

Hello Jeet!
Due to exhaustive professional bindings, I cud nt visit traderji 4 a long time!
My comments r;
1) Only 1 ELSS wil b enough. I wil go 4 sundaram tax saver.
2) Its OK to exit from HDFC Prud especially if one has separate debt investments like FDs, PPF
3) Stick 2 DSP BR TIGER if u still want some sectoral exposure, o'wise no need for such exposure for coming months.
4) Choice of BIRLA SL FL Eq is nice. Try to make it 2k/mo. Alternative is DSP BR Top100.

When u r in process of re-adjusting ur portfolio, fund number may increase in this transient period.

Happy investing!
mr india

 

[life2007]

Thanks for your advice...

I got your point, but selling laggards blindly does not make sense to me. I mean I would not put further fresh funds, but I can definitely hold for the markets to improve. Rite... ?

Now that I wont put fresh money in laggards, and I need to regular invest, I am looking for fresh funds who are performers after the market crash. So say I add 2 new funds. Does that not make my portfolio swell? Just confused about the logic behind the size of portfolio ..

Thanks

Jeet

why you dont want to sell the old funds that are not doing well? in MF it always makes sense to sell laggards and move to best performers. dont think of losses, think future losses.

have a core potfolio of 4 funds
add one midcap
add one tax save
add one theme fund.

thats all !!!

btw, you can invest in Nifty Bees as well

 

[lonsharim]

but selling laggards blindly does not make sense to me. I mean I would not put further fresh funds, but I can definitely hold for the markets to improve. Rite... ?

Laggards are not market specific. When the market is good almost everyone does well and when the markets are bad, almost all of them do bad. So how do we as investors determine which fund is truly a laggard? IMHO any fund that performs below its category average is a laggard. Continuing to keep money in such funds means you are compromising growth rate on your investments in those funds.

 

[mrindia]

Hello!
I agree with Jeet. One cant part with funds especially when mkts r low n there is no immediate need 4 mny. I retain my investments till a fund falls to 3* rating, nt below!
If u stop further investments in laggards, keep a watch on their further fall, take necessary action in time, increase mny in performers or go 4 new entries to re-balance ur portfolio, its cool enough.
In my view, its not scary if ur portfolio 'swells' 4 som time doing so!
Reliance vision has recently recovered touching 3* for some odd months. I retained it in my portfolio but stopped further investments in this fund. I have to watch it 4 some more time if it retains/improves its star rating.