MF portpfolio advice - experts please help

[suresh.k]

I am 32 years old , investing 25,000 rs every month as SIP in the following MFS ,

HDFC top 200 - 11000 rs
Reliance growth - 7500 rs
DSPDR top 100 - 6500 rs

for last 1 year.

I am high risk taker , expecting 15- 20 % CAGR . period is 15 years.

please advise , any changes are required in this.

thanks in adavnce

 

[yodlee99]

Its good you have 2 out of 3 funds in large cap (HDFC Top 200 & DSPBR Top 100) accounting for 70% of your portfolio. As you have mentioned you are a high risk taker, I would suggest higher % of investments in mid, small and micro-caps.
Assuming that you have no other funds in your MF portfolio, some of my suggestions:
1) Reliance Equity Opportunity fund or IDFC Premier Equity-A in place of Rel Growth. Reliance growth has given good returns in the past, but it has very large assets under managements (AUM) while IDFC premier equity is smaller.
2) HDFC Equity in place of HDFC Top 200 and DSPBR Microcap or DSPBR small & mid cap in place of DSPBR Top 100. This will increase your contribution to mid&small cap space.

Returns of 15-20% CAGR is possible in the next 5 years. However, in the long term, the returns are expected to grow slowly. You are advised to increase your SIP amount by 10% every year, if possible.

 

[drsambu123]

Its good you have 2 out of 3 funds in large cap (HDFC Top 200 & DSPBR Top 100) accounting for 70% of your portfolio. As you have mentioned you are a high risk taker, I would suggest higher % of investments in mid, small and micro-caps.
Assuming that you have no other funds in your MF portfolio, some of my suggestions:
1) Reliance Equity Opportunity fund or IDFC Premier Equity-A in place of Rel Growth. Reliance growth has given good returns in the past, but it has very large assets under managements (AUM) while IDFC premier equity is smaller.
2) HDFC Equity in place of HDFC Top 200 and DSPBR Microcap or DSPBR small & mid cap in place of DSPBR Top 100. This will increase your contribution to mid&small cap space.

Returns of 15-20% CAGR is possible in the next 5 years. However, in the long term, the returns are expected to grow slowly. You are advised to increase your SIP amount by 10% every year, if possible.

According to you the long term return(10-15 years) will be relatively less when we compare to next five year return. I think its very difficult to predict those things right now... But anything around 15% is quite good.
Just i checked the most of the funds 5, 7 and 10 year (past)performance through VRO site. Most of the funds 7 year performance is better than their 5 year performance. 10 year performance of most of the MFs are mixed.
So one think we should do is proper asset allocation and periodic rebalance I mean we should have some source to increase the equity allocation during downturn(real estate/debt fund/gold ETF) and reverse during the bull run . One think we should not do is shifting the equity/debt totally and too frequently (timing the market)
http://www.valueresearchonline.com/funds/h2_typecomp.asp?mode=performancelong&Type=1&objective=3
happy investing