Need Portfolio Review On Current SIPs From Experts

[2021]

I've started recently (on 14th, 20th and 28th when market crashed) started these sips-


HDFC Prudence 14th Jan Rs 3000

Templeton India Growth - Growth 14th Jan Rs 1000

IDFC Premier Equity Fund - Plan A 20th Jan Rs 2000

Reliance Regular Savings Fund - Balanced Option - Growth Plan 20th Jan 2000

Reliance Equity Opportunities-G 28th Jan Rs 1000

ICICI Pru Discovery-G 28th Jan Rs 1000

My idea was to utilize pessimist market and invest atleast 10k in all sectors viz large, multi, mid, small and most importantly balanced. With this I also have 20K worth Birla Sun's International Plan A bought in Dec 2010 around 9 nav and is on 5-6% profit. So above new sip's loss is almost notional.

I wish to know from experts is my portfolio too much spreaded (already 6 funds)? I've closely choosen funds which don't have repeated scrips like almost all good funds starts with reliance, sbi, infosys et al. I've paid utmost attention in diversifying portfolio. And my outlook is 2 years as all sips are of 25 monthly installments. Please throw some lights.

 

[asterix24]

Dear 2021,

I will answer your queries from different perspectives and try to summarize at the end.

1) On the onset, let me congratulate you on taking a bold step towards investing and starting off the SIPs. However, the advantage you may have gained by starting off during this bearish phase may not factor too much in the overall scenario at the end of 2 years.

2) Your choice of funds are good, except for choices in Multi-cap. Templeton India Growth is a good fund. Reliance Equity Opportunities has been rated as a 5-star fund, but a close look at it's performance numbers show that it can actually deliver sharp numbers on both sides of the specturm i.e. if market is overly bearish, you can see a far negative returns from this fund and other way around is also true.

Another aspect of Reliance Equity Opportunities is that it's Mid-cap oriented. Personally, I would invest in a fund with a slight large-cap tilt. I would have rather prefered HDFC Equity or Quantum Long Term Equity over this fund.

3) Your current portfolio from a fund perspective stands as:
Balanced 50%
Mid & Small 30%
Multi-cap 20%

This is quite a surprise for me. You have invested with focus on 2 extremes. One extreme is high returns with such a high exposure to Mid and Small cap funds (Remember Reliance Equity Opportunities also has a Mid-cap tilt) and the other being caution with 50% investment in Balanced funds.

This style intrigues me and I would really would like to know the objectives behind the investment style. That said, HDFC Prudence has a portfolio very similar to HDFC Top 200 and can be considered Large and Mid Cap.

4) I am sure you would be locked in for atleast 6 months as you have already started SIPs. If possible do consider the following 2 suggestions

a) After 6 months, re-evaluate Reliance Equity Opportunities and if possible switch to HDFC Equity
b) Immediately start a SIP of Rs. 3000 in a pure Large Cap fund like Franklin India Bluechip or DSP BR Top 100. The revamped portfolio would be

HDFC Prudence 3000
Templeton India Growth 1000
IDFC Premier Equity 2000
RRSF - Balanced 2000
REQO 1000
ICICI Pru Discovery 1000
DSPBR Top 100 3000

with a Cap distribution of

Balanced 38%
Mid & Small 23%
Multi-cap 15%
Large Cap 23%

This should give you good returns with some cushion of Large cap orientation. Having Large cap helps to cushion the swings of Mid and Small cap and hence should be an essential part of every portfolio

Happy Investing !!

P.S: How did you manage to invest into IDFC Premier Equity? Please provide details on how you were able to start a SIP in the same.

 

[2021]

Thanks for the reply and review.

As for your investigations and queries, my investment idea of choosing funds was having vast spread of scrips in top-notch companies and high corpus funds with agrressive (more mid cap based spread) yet higher conservative (higher amount in balanced).

I knowingly avoided large caps as I felt they are overstreached plus I got all such large caps spreaded over above funds viz reliance, sbi, ongc, tcs, icici, tata motors etc to name a few in little but presence quantity. I would surely add large caps as purchase instead of sip when market consolidates from here.

I can freeze my sips any day and even redeem. There is no lock-in, just 1% charge.

Franklin Bluechip looks good as far as thier portfolio but as I said I got such shares in small but presence quantity already. I would though like to freeze and not redeem IDFC Premier A once it is above my sip price cos even I feel IDFC is more risky (though it always gave me good returns on past all 25k investments, 1st time I tired sip, kotak allows it's sip with min 2000 and multiples of 2000).

FrankTemp Growth is fund that gave best returns in past 1w, 1m, 3m and 6m in multicap so I judged it better above reliance equity fund or dspbr 100. I'd though consider your sugesstion in scraping that and/or adding dspbr 100.

REO's portfolio looked quite lucrative to me. Some of the scrips I wanted to add in equities were there in REO, As I said my investment idea was to be agrressive, diversified and different stocks among diversified funds with cautious yet high return approach by putting equal amount in balanced.

Finally I initially started simple balance+muticap, added balnaced+midcap and ended adding more multicaps. There was aim of safe play for long term and good returns. I understand sips in correction don't add value. Right now I'm sitting on funds I don't have courage to put directly in equity market nor wish to directly put lumpsum in funds (almost all require 5000, 4-5 means 20-25k and seeing market from 14th Jan till now my sips are already 1-2% down).

I'll be surely adding dspbr 100 as per your suggestion. HDFC equity/FrankBluechip on face value looks similer to prudence/FrankIndiaGrowth or have similar stocks in above sips/dspbr100 so may skip it.

Thanks again for review and honest reply. Regards.

 

[asterix24]

I am not definitely advising you to redeem from IDFC Premier Equity or Templeton India Growth. They are excellent funds and asked you to review Reliance Equity Opportunities, which seem to have done.

Good choice on DSPBR top 100.

Happy Investing !!

 

[yodlee99]

Good fund choices. Quite a large tilt towards mid & small cap funds, as mentioned earlier. Do consider large-cap funds like Franklin India Bluechip or DSPBR Top 100 or IDFC Imperial Equity Plan A or atleast invest in large- and mid-cap funds such as Birla Sun Life Frontline Equity Plan A or HDFC Top 200.

I liked you analysis. However, I would give a caution to your approach of comparing the holdings between 2 funds. Remember, the holdings change on a day to day basis, if not minute by minute.

 

[reamer]

dear experts, iam new to SIP, could anybody suggest me a portfolio explaining its advantages... Iam planning to invest 20k per month... Thanks in advance...

 

[savkar]

Dear 2021,
HDFC Prudence 3000
Templeton India Growth 1000
IDFC Premier Equity 2000
RRSF - Balanced 2000
REQO 1000
ICICI Pru Discovery 1000
DSPBR Top 100 3000

with a Cap distribution of

Balanced 38%
Mid & Small 23%
Multi-cap 15%
Large Cap 23%

Replace templeton with HDFC equity. much better performance