Revisiting my MF SIP portfolio

[mfnovice]

Eight months back I started monthly SIP in following MFs:-
DSPBR Equity-G Rs. 3000 per month
HDFC Top 200-G Rs. 5000 per month
ICICI Pru Infrastructure-G Rs. 2000 per month
IDFC Premier Equity Plan A-G Rs. 8000 per month

I am 32 years old and can take good risk now. I am planning to stay invested long term in MFs through SIP. Please advise any new MFs to add or replace in my portfolio. I am also planning to start SIP for additional Rs. 7000 per month and want to know which funds to invest additional Rs. 7000 per month through SIP.

Thanks!

 

[mfnovice]

Hi Nikrod, Praveen, What would be your 2 cents?

I am not sure about HDFC Prudence because I do not have much information on hybrid funds.

Any suggestions on other equity diversified MFs?

I believe DSPBR Equity a multi/flexi cap - go anywhere fund and Reliance Regular Savings Equity Fund is a large+mid cap fund (correct me if I am wrong). What should be ratio of midcap and large cap funds in the portfolio?

 

[nikrod]

Hi Nikrod, Praveen, What would be your 2 cents?

I am not sure about HDFC Prudence because I do not have much information on hybrid funds.

Any suggestions on other equity diversified MFs?

I believe DSPBR Equity a multi/flexi cap - go anywhere fund and Reliance Regular Savings Equity Fund is a large+mid cap fund (correct me if I am wrong). What should be ratio of midcap and large cap funds in the portfolio?

DSPBR Equity & Reliance Regular Savings, both are multicap funds.

The current composition of your portfolio is 1 large cap (HDFC), 1 mid cap (IDFC), 1 multicap (DSPBR) and 1 sector (ICICI) fund. Your portfolio is tilted towards mid cap in this light. It is also a bit risky.

I would suggest that out of 7000 new SIP's, allocate 3000-4000 more to HDFC Top 200. You can then add Reliance Regular Savings with remaining amount. Note that even after this, your portfolio would remain mid cap oriented.

HDFC Prudence is an excellent fund with good track record. But I would advice you to go for a good debt fund if you are looking for debt exposure. If you already have enough debt exposure in form of FD's & PPF/EPF, stick with equity only funds.

 

[nikrod]

In my view your portfolio is quite impressive. For additonal Rs.7000/- I would suggest -
1. Reliance Regular saving Fund (Eq)
2. HDFC Prudence ( For little diversification)

Another Note - HDFC prudence invests equity part of it's portfolio mainly in mid cap stocks.

 

[mfnovice]

Thanks Nikrod. Is it a good idea to invest 4000 further in HDFC Top 200 or shall I diversify and choose any other large cap fund?

Also shall I invest Rs 3000 in Reliance RSF or Reliance Growth will be a better choice?

Thanks again!

 

[nikrod]

Thanks Nikrod. Is it a good idea to invest 4000 further in HDFC Top 200 or shall I diversify and choose any other large cap fund?

Also shall I invest Rs 3000 in Reliance RSF or Reliance Growth will be a better choice?

Thanks again!

Since you already have 5 funds in your portfolio and adding onemore; enough diversification is provided.

I think Reliance RSF should be fit for you since it's multicap fund. Reliance Growth will make your portfolio more mid cap oriented than it is now.

 

[mfnovice]

Currently I am investing Rs 18000 per month SIP in MFs. How much return can I expect after 20 to 25 years with this investment? What is the formula used to calculate it, please explain! I am doing this investment for retirement and want to understand how much I can expect and will that be enough.

I am going to invest another Rs. 7000 per month SIP for my kids eduction. Again how much % return can I expect with 10 years of investment.

 

[nikrod]

Currently I am investing Rs 18000 per month SIP in MFs. How much return can I expect after 20 to 25 years with this investment? What is the formula used to calculate it, please explain! I am doing this investment for retirement and want to understand how much I can expect and will that be enough.

I am going to invest another Rs. 7000 per month SIP for my kids eduction. Again how much % return can I expect with 10 years of investment.

For calculating SIP return over long term, recurring deposit formula is used.

Use following link for recurring deposit calculation - https://www.corpbanknet.com/Recurr_deposit_Calc.html

If you are investing 18000 per month the returns after 25 years will be as follows

@10% p.a. - 24,082,027
@12% p.a. - 34,157,432
@15% p.a. - 59,113,328
@20% p.a. - 155,280,747
@25% p.a. - 427,588,949

For very long term you should expect 12-15% returns on your portfolio.