Portfolio review needed

[sandeep729]

Hello all,

After a bit of research and some vital information from the seniors of Traderji, I have started SIP in following funds along with my already existing SIP in Kotak opportunities and SBI magnum

DSPBR microcap fund 1000/-
DSPBR equity 1000/-
HDFC top 200 2000/-
HDFC equity 1500/-
Reliance Growth 2000/-
HDFC midcap oppor 500/-
HDFC prudence 500/-
Quantum Long term Equity 1500/-

Also I am planning for Reliance Banking since I have investingated that banking funds would perform well in the coming years.

Please review my portfolio and let me know your views. All Suggestions are welcome.

Happy investing :clap:

 

[yodlee99]

All your funds have given consistent returns now. You have chosen 8 funds for a total SIP of 10k per month. I guess all you would need is a set of 4-5 funds.
HDFC top 200 2000/-
Reliance Reg savings balanced fund 2000/-
Quantum Long term Equity 2000/-
DSPBR microcap fund 1500/-
Birla SL Frontline Equity plan A 2500/-

 

[asterix24]

I guess Yodlee has given very valid inputs, but I had a small suggestion. Reliance RSF Balanced is similar rated as HDFC Prudence, but has a higher expense ratio as compared to HDFC Prudence.

Thematic funds are extremely volatile and unless you have the risk appetite for the same, I would suggest choose a Large & Mid cap fund with a large exposure to Banking. It will help to hedge your risk in case expected progress in banking sector is hampered.

BSL Frontline Equity, Fidelity India Growth, HDFC Top 200 are some examples which have around 25-30% exposure to financial institutions. However, Banking BEES would be a good option in case you do wish to continue with your strategy to invest into Banking sector specific fund.

Happy investing.

 

[bahuguna]

hellow seniors and yodlee99 bhai
I have posted my portfolio under Best Multi Cap Fund Thread for your valuable guidance but so far there is no response.....Plz read it and guide me.For your ready reference i am reproducing my funds here
1. Icici pru discovery Growth
2. Icici Focussed Bluechip
3 HDFC midcap Opportunities
4 HDFC top 200
5. Birla SL Frontline equity
I want to invest 25000 pm and want to know how should i distribte this amount among these funds.In one post yodlee99 ji you hv suggested someone to drop HDFC Midcap as well. Which one i should drop. I think icici fucussed bluchip can be dropped. Should i continue only with other four funds. Waiting for ur valuable suggestions plz.

 

[asterix24]

Hi Bahuguna,

It was to my post that Yodlee was suggesting to skip HDFC Midcap opportunities. Personally, I am not convinced why one shouldn't invest into this fund as this has been a good performer for many years.

Coming to your post, for Rs. 25000 p.m investment, I feel you can invest into 5-6 funds based on your convenience and goals. My view points on your funds is as below.

1. Icici pru discovery Growth - Mid and Small Cap: Good fund to invest in. CONTINUE investing
2. Icici Focussed Bluechip - Large Cap: Suggested to SKIP: Please read below for alternatives
3 HDFC midcap Opportunities - Mid and Small cap: Personally, I feel a good fund: CONTINUE investing
4 HDFC top 200: Large and Mid cap: Another good fund from HDFC: CONTINUE Investing
5. Birla SL Frontline equity: Large and Mid Cap: Good fund from BSL. CONTINUE Investing

Instead of ICICI focussed Bluechip, for plain vanilla Large cap funds, you can consider Franklin India Bluechip (highly rated), DSPBR Top 100, IDFC Equity Plan. Already you have couple of Large and Midcap funds in HDFC Top 200 and BSL Frontline equity. From Mid and small cap funds, you can think of DSPBR Small and Mid cap or DSPBR Micro cap. You can add another fund from either of the stables to diversify if necessary or consider a Multicap fund or Junior BEES.

I am under the assumption that you do have the risk appetite to a high exposure to equities. It may be a good idea to introduce a balanced fund into your portfolio (if you deem necessary). In this category, my personal favorite has always been HDFC Prudence which has a long running good track record.

With these suggestions, you can consider either of the 2 portfolios.

PF1: (Complete Equity)
1. ICICI Pru Discovery Growth - 4000
2. IDFC Equity Plan / DSPBR Top 100 - 4000
3. HDFC Midcap Opportunities - 4000
4. HDFC Top 200 - 4000
5. BSL Frontline Equity - 5000
6. DSPBR Small and Midcap OR Fidelity India OR Fidelity Growth OR Franklin India Bluechip - 4000

PF2: (With Balanced Diversification)
1. ICICI Pru Discovery Growth - 4000
2. IDFC Equity Plan / DSPBR Top 100 - 4000
3. HDFC Midcap Opportunities - 4000
4. HDFC Top 200 - 4000
5. BSL Frontline Equity - 5000
6. HDFC Prudence - 4000

Please take your own informed decision on which funds to invest into. I would like to suggest another thing. If your investment vehicle (i.e. advisor or ISA or brokerage account) allows you to setup weekly SIPs, consider breaking down 4k invesment into 4 weekly investments of Rs. 1000 each, on a different date (for ex: 1, 7, 14, 21). If not, do spread your investment across month to have some diversification.

Happy Investing

 

[yodlee99]

1. Icici pru discovery Growth -> Good one. Can also be replaced by IDFC Premier equity plan A or Reliance Growth
2. Icici Focussed Bluechip -> Ok. Better one would be DSPBR Top 100, Quantum Longterm equity, Fidelity equity.
3 HDFC midcap Opportunities -> Do you really need another midcap fund like #1 above? Fine, if you want it.
4 HDFC top 200 -> Good.
5. Birla SL Frontline equity -> Good.

Instead of #3 above, go for a balanced fund (like Reliance RSF balanced, HDFC balanced). A little bit ~5% of your portfolio can go into gold ETFs, if desired.

 

[asterix24]

Hi Bahuguna,

In your post under *Best Multicap Fund* thread, I observed that you are 49 and you are working couple. Though you have very good benefits in day-to-day life, I was wondering if you are willing to take a high exposure to only equity oriented funds considering your age profile. Pardon me sir, if you are upto it, but felt should ask the question as I was surprised by your choice of highly equity oriented funds.

I personally would agree with Yodlee that you need a better diversification into Balanced Fund, Gold ETFs and some debt funds (to park your emergency funds). The ratio of investment should be carefully thought about based on your life profile and outstanding debts/commitments in future.

Happy Investing !!

 

[bahuguna]

Hi Bahuguna,

It was to my post that Yodlee was suggesting to skip HDFC Midcap opportunities. Personally, I am not convinced why one shouldn't invest into this fund as this has been a good performer for many years.

Coming to your post, for Rs. 25000 p.m investment, I feel you can invest into 5-6 funds based on your convenience and goals. My view points on your funds is as below.

1. Icici pru discovery Growth - Mid and Small Cap: Good fund to invest in. CONTINUE investing
2. Icici Focussed Bluechip - Large Cap: Suggested to SKIP: Please read below for alternatives
3 HDFC midcap Opportunities - Mid and Small cap: Personally, I feel a good fund: CONTINUE investing
4 HDFC top 200: Large and Mid cap: Another good fund from HDFC: CONTINUE Investing
5. Birla SL Frontline equity: Large and Mid Cap: Good fund from BSL. CONTINUE Investing

Instead of ICICI focussed Bluechip, for plain vanilla Large cap funds, you can consider Franklin India Bluechip (highly rated), DSPBR Top 100, IDFC Equity Plan. Already you have couple of Large and Midcap funds in HDFC Top 200 and BSL Frontline equity. From Mid and small cap funds, you can think of DSPBR Small and Mid cap or DSPBR Micro cap. You can add another fund from either of the stables to diversify if necessary or consider a Multicap fund or Junior BEES.

I am under the assumption that you do have the risk appetite to a high exposure to equities. It may be a good idea to introduce a balanced fund into your portfolio (if you deem necessary). In this category, my personal favorite has always been HDFC Prudence which has a long running good track record.

With these suggestions, you can consider either of the 2 portfolios.

PF1: (Complete Equity)
1. ICICI Pru Discovery Growth - 4000
2. IDFC Equity Plan / DSPBR Top 100 - 4000
3. HDFC Midcap Opportunities - 4000
4. HDFC Top 200 - 4000
5. BSL Frontline Equity - 5000
6. DSPBR Small and Midcap OR Fidelity India OR Fidelity Growth OR Franklin India Bluechip - 4000

PF2: (With Balanced Diversification)
1. ICICI Pru Discovery Growth - 4000
2. IDFC Equity Plan / DSPBR Top 100 - 4000
3. HDFC Midcap Opportunities - 4000
4. HDFC Top 200 - 4000
5. BSL Frontline Equity - 5000
6. HDFC Prudence - 4000

Please take your own informed decision on which funds to invest into. I would like to suggest another thing. If your investment vehicle (i.e. advisor or ISA or brokerage account) allows you to setup weekly SIPs, consider breaking down 4k invesment into 4 weekly investments of Rs. 1000 each, on a different date (for ex: 1, 7, 14, 21). If not, do spread your investment across month to have some diversification.

Happy Investing

ohhhh God, all my answers were here and i was searching thm all somewhere else. Anyway asterix and yodlee thank you very much for the time and pain taken in evaluating my pf.
First of all, ignorantly I have purchased aforesaid funds with a view that i will start SIP in them but i was wrong. Both of you please suggest me what to do with these lump sum bought out funds....? shall i redeem them and start all afresh through SIP route? how about adding them all just like SIP every month however the only difference wud be that of brokerage as SIP wud cost only Rs.30 per transaction and adding wud cost me Rs.100. But since internet is available to me all the time I can sincerely make monthly addition to all my funds with discipline. Please guide me what wud be better course of action for me
Yes asterix my circumstances are such that I can take risk. Both your suggested pfs are good and now I have decided as under
1. ICICI Discovery
2 Reliance RSF Balance /HDFC Prudence
3. HDFC Top 200
4. Birla SL Frontline
5. Franklin India Bluechip fund.
Yodlee and you have rightly suggested me a balanced fund so i am going with that. What is ETF and how can I buy or trade into that. I do my trading thrugh ICICI Direct.com and please do enlighten me the best course of action with regard to my aforesaid folly.

 

[asterix24]

ETF stands for equity traded funds which is provided by Benchmark AMC. Basically, these funds signify an unit of something. For example, GoldBEES is a gold ETF that captures the daily price of a 1gm of 24carat gold.

An ETF can be bought and sold only in demat form and is listed and traded on typical exchange like NSE. As you have an account with ICICI Direct, you can invest into any of the ETFs directly. A key difference between an ETF (though the name has a fund) and a typical MF is that an ETF has a intra-day variation like a stock and has an opening and closing price, where as MF's NAV is averaged price at the end of the day.

Some of the ETFs that you can invest into:
GoldBEES - ETF that captures 1gm of 24carat Gold
NiftyBEES - 1/10th of the instantaneous value of NIFTY
JuniorBEES - 1/100th of the instantaneous value of Junior NIFTY

All listed ETFs from Benchmark AMC can be looked up at http://www.nseindia.com (Type BEES in Get Quote)

There is a catch that the brokerage charged by different houses on ETFs is slightly different as compared to stocks.

Happy Investing!!