Portfolio review

[Sumhas]

We are planning to start our mutual investmentsfrom this month

SIP: We plan to do the SIP for 5 years with a monthly investment of 30k split between the following 6 funds

1) Equity: Large: Franklin India Bluechip-G

2) Equity: Large & Mid Cap: HDFC Top 200-G

3) Equity: Multi Cap: HDFC Equity-G

4) Hybrid: Equity-oriented: HDFC Prudence-G

5) Equity: Mid & Small Cap: BSL Dividend Yield Plus-G
6) Equity: Mid & Small Cap: IDFC Premier Equity Plan A-G

Also, we plan to do lump-sum investment into the following two funds:
1) SBI Gold ETS
2) Magnum FMCG

Please let us know what you think of the selection of funds. Should we consolidate any of the funds / decrease the number of funds?

Thanks,
Sumhas

 

[anand4217]

You are a bit heavy on HDFC fund house, but have chosen excellent funds which have been doing extremely well over the years, hence you can continue with those.

I would suggest you go with first 4 in your list and then select one of the two mid-cap funds (I would go with IDFC as BSL is more of a multi cap fund and I think you should go for heavy mid/small cap oriented fund for more aggressive portfolio).

Finally you can go for SBI Gold and definitely stay away from sectoral fund like Magnum FMCG, considering a. they are very risky and volatile and b. assuming you are a new investor.

6 funds (5 equity oriented and 1 gold) are sufficient for 30 K monthly spend.

 

[asterix24]

Hi,

Your portfolio looks fine except for a few points on which I have certain views. HDFC Top 200 and HDFC Prudence have almost identical portfolios. Please do consider if you want to have both of them in your portfolio. Consider DSPBR Top100 or Birla Sunlife Frontline Equity as replacements for HDFC Top 200.

Magnum FMCG is a sectoral fund. In the current times of volatility, I am personally not sure if this is a good idea. I would rather suggest go in for specific stock picking if you indeed require exposure to FMCG sector. Sectoral fund in the current times requires a brave heart !!

Last but definitely not least is lump-sum investment in Gold. Gold ETFs have appreciated enormously in this month. Just have a look at the price on Aug 1st, which was 2200 and current price is around 2600 with an intermediate high of 2800. There could be potential corrections coming.. (atleast I hope so).. I would recommend a systematic investment with a buy on dips strategy... Say every 5% dip, you add another 5-10 units as an example....

Happy Investing!!