MF recommendations required

[abdriver2000]

I have been SIPping 31K/month into the following funds for past 15 months.

HDFC Top 200 - 8K - 2K x 4 days
DSPBR Top 100 - 6K - 2K x 3 days
HDFC Prudence - 5K - 1K x 5 ays
Reliance Reg. Saving - Balanced - 6K - 2K x 3 days
DSPBR Mid and Small Cap - 6K - 2K x 3 days

Total 31k/month

All of these SIPs will stop this month end. What would your recommendations be for the next FY starting April?

 

[abdriver2000]

100 views and 0 responses

:sos:

 

[sanjosedesi]

How has your experience been so far?

 

[abdriver2000]

Since the markets were beaten badly in Q4 of 2011, my returns on these funds have been modest. Most of them have returned about 4% except for the Reliance fund which has given 1%.

I am invested for the long term, so there is no churn.

 

[sanjosedesi]

See I got out of mutual funds a few months back, so my knowledge is not the latest. The list of funds you have is good. Other funds will give similar returns, with a surprise once in a while.

What I wanted to check was whether you are satisfied or you are trying to optimize it by market timing.

#1. Balanced funds are safer but give lower returns than pure equity. If you are not looking at short term, why balanced funds? You might hit a bad year with pure equity fund like top 200, but over the long run I would expect them to perform better than balanced ones.

If I were to buy balanced funds, I would move funds out of then
Into equity funds whenever market corrects 10 percent or more. You may pay a 1 percent exit, but the funds will make up for it when they move up. Given that you have been building the balanced funds for a while, you might have some units which you can move without exit load or tax (1 year holding).

Today for example the market is almost ... but not entirely ... 10 percent lower than it's recent peak and it may (or still may not) be a good time fir some if this.

More later ... Gotta go.

 

[sanjosedesi]

Sorry guy, don't have much more to add. Your list is more or less good although I personally don't like balanced funds. If the assumption is that all this money is meant for equity, balanced funds are not pure equity. Apart from that you could do some market timing ... it depends on how much time you have to spare and I have anyway explained one low effort model to move from balanced funds to other funds. Any other specific questions ... pls do ask.

 

[krishna324]

you can add IDFC Premier Equity fund..
it is one of the best performer..

 

[asterix24]

Your portfolio looks fine. Assuming you are young (as you have told that you are invested for a long haul), I would recommend you switching out of RRSF Balanced and moving to Franklin India Bluechip (if you wish more stability as this is a Large cap fund) or to HDFC Mid-Cap opportunities / IDFC Premier Fund (Mid and Small cap, more risk, but better potential returns).

Happy Investing !!!

 

[abdriver2000]

Here is version 2 of the plan:

HDFC Top 200 - 8K - 2K x 4 days
DSPBR Top 100 - 6K - 2K x 3 days
HDFC Prudence - 5K - 1K x 5 days
IDFC Premier - 6K - 1k x 6 days
Franklin Bluechip - 6K - 2k x 3 days

Last 2 are new entrants to my portfolio. Does this make my portfolio more aggressive or risky than earlier?


One more question, though not related to this query. I have a few funds in Dividend mode. Should I redeem those before the DTC regime kicks in? Most of these funds have given good returns, but should I redeem them or transfer them to growth mode instead?

 

[abdriver2000]

Besides the above I am planning to purchase 1 or 2 units of Gold ETF every month.Is there a way to SIP in Gold ETF? I am using HDFC ISA account for MF purchases.