Is this portfolio adequately diversified?

[abhik_s]

Please consider this investment portfolio for a 34 years old person (all figures are for one month):

Provident Fund: Rs3000

SIP in the following funds(growth option):

Large and Midcap funds:
HDFC Top200: Rs3000
HDFC equity: RS2000

Midcap Fund:
ICICI prudential discovery: Rs1000

Small and Midcap:
IDFC premier equity Plan-A: RS2000
BSL Dividend Yield Plus: Rs1000

Multicap fund:
Reliance regular savings fund: Rs1000
UTI dividend yield: Rs2000

Balanced Fund:
HDFC Prudence: Rs1000

ELSS funds:
HDFC Tax-saver: Rs2000
Fidelity Tax-advantage: RS2000


First of all, what is your impression about the above portfolio? Assume investment period of around 15-20 years.

Do you think any one or more of the following fund(s) would be better than any of the above choices?
HDFC capital builder, Reliance equity opportunities, ICICI pru dynamic, ICICI focussed bluechip, DSPBR equity, Birla sunlife frontline equity. Or if you think it would be better to replace any particular choice by something else you have in mind, please suggest that.

 

[yodlee99]

All your funds are good and most of them are consistent players too. This just means that the fund managers & their team have done a good job. However, our job is to distribute our investments wisely.
For an investment of 17K in MF (apart from the provident funds), all you will need is 4-5 funds. Keep 1 for large cap (DSPBR Top100 or Birla SF Frontline equity-Plan A); 1 for a multi cap (HDFC Equity or DSPBR equiry or Reliance Reg savings equity); 1 ELSS (amongst the 2 that you have, Fidelity Tax-advantage is a good one); 1 for Midcap (IDFC premier equity Plan-A or ICICI Discovery). If you are looking for regular returns, have 1 dividend fund like UTI dividend yield fund.
Believe me, it makes tracking these 4-5 funds really doable. Ofcourse, I am assuming you have a day-time job and you don't want to be wasting time in tracking a lot of funds. Remember, each fund invests in 100 to 200 company stocks.

Always invest in the growth mode in SIPs on different dates of the month, for better cost averaging.

Good luck!

Please consider this investment portfolio for a 34 years old person (all figures are for one month):

Provident Fund: Rs3000

SIP in the following funds(growth option):

Large and Midcap funds:
HDFC Top200: Rs3000
HDFC equity: RS2000

Midcap Fund:
ICICI prudential discovery: Rs1000

Small and Midcap:
IDFC premier equity Plan-A: RS2000
BSL Dividend Yield Plus: Rs1000

Multicap fund:
Reliance regular savings fund: Rs1000
UTI dividend yield: Rs2000

Balanced Fund:
HDFC Prudence: Rs1000

ELSS funds:
HDFC Tax-saver: Rs2000
Fidelity Tax-advantage: RS2000


First of all, what is your impression about the above portfolio? Assume investment period of around 15-20 years.

Do you think any one or more of the following fund(s) would be better than any of the above choices?
HDFC capital builder, Reliance equity opportunities, ICICI pru dynamic, ICICI focussed bluechip, DSPBR equity, Birla sunlife frontline equity. Or if you think it would be better to replace any particular choice by something else you have in mind, please suggest that.

 

[sibumajumdar]

All your funds are good and most of them are consistent players too. This just means that the fund managers & their team have done a good job. However, our job is to distribute our investments wisely.
For an investment of 17K in MF (apart from the provident funds), all you will need is 4-5 funds. Keep 1 for large cap (DSPBR Top100 or Birla SF Frontline equity-Plan A); 1 for a multi cap (HDFC Equity or DSPBR equiry or Reliance Reg savings equity); 1 ELSS (amongst the 2 that you have, Fidelity Tax-advantage is a good one); 1 for Midcap (IDFC premier equity Plan-A or ICICI Discovery). If you are looking for regular returns, have 1 dividend fund like UTI dividend yield fund.
Believe me, it makes tracking these 4-5 funds really doable. Ofcourse, I am assuming you have a day-time job and you don't want to be wasting time in tracking a lot of funds. Remember, each fund invests in 100 to 200 company stocks.

Dear, Iam in full agreement with you that to get benefits of MF, we need only 5 to 6 funds...each one from Large Cap (DSPBR TOP 100), Large & Mid cap (BSL Frontline Pl A or HDFC TOP 200 or Fidelity Equity ), Mid & Small Cap ( IDFC Prem Eq PL A or BSL Div Yield, ICICI DIcovery also can be considered ), Multi cap ( Reliance Reg Sav Equity, can be considered UTI DIV Yield ). I personally hold in above schemes. As i am aged 59 Yrs , I have placed good amount in HDFC MIP LT & Reliance MIP with monthly SIP from them to best Balance Funds ( HDFC Prudence & Reliance REg Sav BALANCE ) . Thanks & Good Luck to ALL....SLM uncle