please help my portfolio..

[spanner_sparkplug]

I have invested in a few mutual funds in 2006 & 2007, due to the nature of my job i was not able to track it for quite some time. I am a first time investor. I am giving the names and type of the mutual funds i am holding right now, please suggest me as of what to do with it - sell / hold / change from dividend to growth option / change to another plan in the fund house / etc.your suggestions will be very valuable for me ,

1 .Sundaram Select Midcap - Regular Plan (D) - bought in 2007- inv
inv Rs.10000/-

2.DSP BlackRock India T.I.G.E.R. Fund - Regular Plan (D) - bought in 2008-
inv Rs.10000/-

3.Franklin India Flexi Cap Fund (D) - bought in 2006- inv Rs.5000/-

4.Kotak Opportunities Fund (D) - bought in 2008- inv Rs.10000/-

5.Reliance Vision Fund - Retail Plan (D) - bought in 2006- inv Rs.5000/-

6.SBI Magnum Global Fund (D) - bought in 2007- inv Rs.10000/-

All the above are in dividend reinvestment option.Now i will be able to keep track of my holdings in future. Also I am looking for long term investment.I am not looking for short term, my horizon is about 3 to 5 years may be more if the fund is good.
Also please suggest which other mutual funds i can buy for the same.
Iam 32 years of age.
your inputs are very valuable for me
thanks and regards.

 

[asterix24]

Dear Friend,

There are couple of things that strike about your investments. Your investments made sometime back might have been good picks at that point of time, but in current scenario aren't amongst the best of funds. Another point I observe is that they are all lumpsum investments and in a volatile market, it's dangerous to do so. SIP is always the best way forward to investing into MFs.


You can keep the funds locked in if you don't have any urgent requirement of funds. You can consider withdrawing when you watch the index peaking (thereby NAV also peaks). However, currently there is a lot of volatality and I would advise you to wait and watch atleast for a couple of weeks.

If you are investing over a 3-5 year range, the way to go is through SIPs. I am listing down the most commonly advised funds in different categories:

Large Cap: Franklin India Bluechip, IDFC Imperial Equity, DSPBR Top 100
Large & Midcap: BSL Frontline Equity, HDFC Top 200, Fidelity Equity
Multicap: Reliance RSF Equity, HDFC Equity
Mid & Small Cap: ICICI Discovery, IDFC Premier Equity, BSL Dividend Yield Plus
Balanced: Reliance RSF Balanced, HDFC Prudence

You can build a portfolio of 2 LargeCap, 2 Large and MidCap, 1 Multicap, 1 Mid & small cap, 1 Balanced fund and I feel it should be fine for your age profile (I am also in same age bracket).

Happy Investing !!

 

[milind]

Agree with asterix that the funds you have invested are no longer top rated - with possible exception of sundaram midcap. It may be good idea to redeem those investments and put the money in top rated funds (pl refer to value research).

SIP is not required since you will be moving from one equity investment to the other. I would suggest one largecap, one multicap, and one midcap fund. Please use SIP for any new money you put in, and review your portfolio at least once a month.

-- Milind

 

[spanner_sparkplug]

Dear friends,
thanks for your valuable advice. i will make it a point to review my MF investments fron time to time (atleast every 6 months). i will redeem them and re invest them in MFs , for my case SIP will not be possible for the next few years, so i intend to redeem the money and re invest it lump sum, as per your suggestions.
thanks and regards

 

[asterix24]

Dear Friend,

I can suggest an alternative to your strategy. Most of your funds should give you decent profit and you should be able to redeem much higher than what you invested. If so, you can consider investing your proceeds into a Liquid fund and starting an STP to some equity funds. This way you can get some growth with a Liquid fund, but also benefit from STP/SIP into an equity fund.

Unless you have invested lumpsum in last 2 days, your window may be very narrow. Hence, I wanted to suggest that this too is a possible option.

Best of luck. Happy Investing !!