Fund Allocation

#1
hi all

I wish you a ,Happy diwali to all of you...

Traderji has been been a good place, to get valuable suggestions and tips for choosing great funds. Frm here i got valuable suggestion to choose funds. Since i was planning to increase my investment size in mutual funds i will again like to seek your suggestion or views on the porfile that i like to choose.

Fund amount 200000

Funds will be allocated as under.
1. Large & small cap- 20% amt 41000
a. Hdfc top 200... Amt 25250
b. Birla sunlife frontline plan a...amt 15750

2. Small & Midcap -19.25%
a. Reliance growth...amt 16500
b. Idfc premier a..amt 22000

3. Multicap - 17.75%...amt 35500
a. Reliance regular saving fund growth...amt 17750
b. DSPBR Equity...amt 17750

4. Elss-30% for tax saving....amt 61000
a. Hdfc tax saver...amt 30000
b. Fidelitu tax advantage...amt 31000

5.debit - 12%.. Amt 24000
a. Recurring deposit....amt 24000

I hope i m not carried away with too many funds

Pls let me know if the above funds r ok, also note i m ad will be investing vide sip.

I also forgot to mention i m hvins sips for reliance grwth, idfc prima a ad hdfc top.
Ad also recurrind deposit

Thnk s
 
#2
hi all

I m also hving concern twrds, hight amt being pushed towrds elss. At the time when the market is too hight.
Cn any bdy comment on it or give value able suggestion onit

Thnk s
 

a2744010

Active Member
#3
You are choosing too many funds to begin with. Stick to few ones which have proved good returns in past. IDFC preimer, reliance growth, hdfc 200, icici pru discovery, dsp micro, reliance regular and principal emerging to name a few. Since large caps and midcaps looks strecthed out it'll be advisible to choose small caps and sector funds instead of putting all eggs in one basket.

I'd suggest you to choose dsp black rock micro cap, principal emerging from mid/emerging, idfc premier in large cap and idfc small, sbi mag emerging for smallcap. You can choose your own bunch of funds but don't make them more than 4-5. Further choose some infra and power too as the stocks are highly undervalued in compare to rally seen. Thirdly put some money in gold etfs, reliance gold and goldbees are preferable. Also use your 20% money in bonds which gives accumalative return upto 12% and FDs. If your aim is to save tax then instead of buying too much of ELSS put money in other tax savings like NSC or PPF, get a medical insurance for your family and secure high rates of medical expenses. Buy a pension policy from NPS from www.pfrda.org.in/ which is cheapest and best and if you are govt employee govt will contribute 1000 rs towards your premium too, avoid buying private policies. Allocate some funds towards land bank, take a loan and get tax saving on installments, from your saving sehduled it looks you can take 1000 sq ft land easily, keep it at disposal until required. Just allocate 10-15% of 2L and rest money you can take loan. I assure you if you do all this you'll search me after 15 years to pay some premiums. :D
 
#4
hello

I m going through the above post ad will get back to you one by one.

1. Land- brother land is not so cheap, in delhi it self aquiring 1000 sq feet will cost me rs 30,000,00 appx. So if i take a home loan, i will hv to spend my another 15-20 years to may off the debt. I m not be left with any money to save for my retirement. Also pls nt that i m not considering down payment that i hv to payment , in to the above. I do agree with you i will be after you life , but to pay my premiums towards my loan.

2. Tax saving -
 
#5
2. Tax saving - i like to thank you towards your suggestions. Also pls note that i hv done lot of home work on it.
I hv exhausted the 15000 limit for medical insurance,
Ad futher out of 100,000 limit i hv exhausted 40,000 ( which includes payment to pension pretmium, tution fees ad term insurance). So i m left with 60000 , which i will like to invest in elss, as the rate of return is good when i m comparing with nsc, ppf ad nps. Once the dtc steps in , i will invet in ppf, or nps. Since i not be hving much options left. Also investing at this point in nps is not fruitful as it is not matuired yet .

3. Mutual fund suggestion. : i m working on it ad will get bk to you
 

yodlee99

Active Member
#6
Good to know that you done a great job in researching various funds. I still second the opinion that there are too many funds for just 2 lakhs of annual investment. Unless you have lots of time in hand, I would suggest just a few: Birla SL Frontline equity plan-A, HDFC Top 200, DSPBR Equity or Reliance RSF Equity and IDFC Premier equity Plan A. Pick 1 of the 2 ELSS funds and both of yours are good.
If you are in 20s or 30s, you can skip the debt part and invest completely in equity. As you near your financial goals and want to redeem, start transferring to debt funds atleast 1 year before the deadline, inorder to preserve capital. However, if you want to increase your debt component, you can pick HDFC Balanced instead of Top 200 OR pick Rel RSF Balanced in place of Rel RSF Equity.
 

a2744010

Active Member
#7
hello

I m going through the above post ad will get back to you one by one.

1. Land- brother land is not so cheap, in delhi it self aquiring 1000 sq feet will cost me rs 30,000,00 appx. So if i take a home loan, i will hv to spend my another 15-20 years to may off the debt. I m not be left with any money to save for my retirement. Also pls nt that i m not considering down payment that i hv to payment , in to the above. I do agree with you i will be after you life , but to pay my premiums towards my loan.

2. Tax saving -
Thanks for reading my post and putting valid arguments. Regarding land at disposal, it's not necessary to have land in Delhi. I'm from NCR myself and I know the costs of acquiring land here. But I've bought a 650 sq ft plot on Sohna Road in 2006. At that time and even now that area is not developed. Take example of Dadri or Yamuna expressway or Ghaziabad's outscerts. Land there is pretty cheap. I'm not puhsing you to buy land but one must have an asset like land in portfolio other than your home. It helps in economic security. Making a healthy portfolio must have equities+mutual funds+bonds like nsc+insurance+health cover+asset like cash and land/extra home+gold or any long term investments like fd.
 
#8
Thanks for reading my post and putting valid arguments. Regarding land at disposal, it's not necessary to have land in Delhi. I'm from NCR myself and I know the costs of acquiring land here. But I've bought a 650 sq ft plot on Sohna Road in 2006. At that time and even now that area is not developed. Take example of Dadri or Yamuna expressway or Ghaziabad's outscerts. Land there is pretty cheap. I'm not puhsing you to buy land but one must have an asset like land in portfolio other than your home. It helps in economic security. Making a healthy portfolio must have equities+mutual funds+bonds like nsc+insurance+health cover+asset like cash and land/extra home+gold or any long term investments like fd.
Hello

Thank for your feedback , i m not saying that you are pushing me to apply for a land.

Pls note that the Land as a asset class needs a big investment . To purchase it you need to do proper R&D

before buying it. This is needed to be done in order to ensure that right type of land is

purchased. When i say "right " i mean the price that i m paying should be reasonable i.e i

should not be paying high price. Also their price of the land apprcate faster i.e location

should be good. Foerg the prices of the land that i aquire in delhi as approcated more that

300 time. I will not advise anybody to go for Land in Dadri, Ghaziabad or Firadabad . As in

dadri the land appriciation is too slow and problem is which securlty . Same goes for

ghaziabad. But for firadabad their is a case for appriciation.

Also note that in order to have strong portofolio , you need to hv the folloinwg :

Mutual Funds
Equity
PPF
Gold
Term Insurance
Cash x 3( of salary)
FD
Land
 
#9
Good to know that you done a great job in researching various funds. I still second the opinion that there are too many funds for just 2 lakhs of annual investment. Unless you have lots of time in hand, I would suggest just a few: Birla SL Frontline equity plan-A, HDFC Top 200, DSPBR Equity or Reliance RSF Equity and IDFC Premier equity Plan A. Pick 1 of the 2 ELSS funds and both of yours are good.
If you are in 20s or 30s, you can skip the debt part and invest completely in equity. As you near your financial goals and want to redeem, start transferring to debt funds atleast 1 year before the deadline, inorder to preserve capital. However, if you want to increase your debt component, you can pick HDFC Balanced instead of Top 200 OR pick Rel RSF Balanced in place of Rel RSF Equity.
Hi Yodlee

Thank for your feedback.

My age is 31 and i plan to invest 2 lakh every year in mutual fund , for next 20 years. So i

need to make a proper choise of the fund , bfr i proceed with investing .

I hv been investing vide SIP in HDFC top 200, Relaince Growth , IDFC Premier A & Recurring

deposit. If i hv a look at this portfolio i m investing more like 25% in large and mid cap

, 50% in mid & small cap and the remianing 25% in debt.which is quote riskey I just want to strengten the core part of this portfilo by investing in more funds may be three or more.

I will like to strengthen the core part by adding the folling funds:
1) IDFC Imperial Plan A or Franklin India Blue Chip ( both are large cap )
2) HDFC Top 200
3) Birla SF Plan A
Total amount will be invested will be 40%

Few other funds that i will like to include will be
4) IDFC Premium Plan A
5) Relaince Growth
Total invested amount will be 20%

6) Reliance Regular saving fund growth
Total invested amount will be 20%

7) RD ( 20%)

Pls let me know if the above choise is good

thnk s
 
#10
In this portfolio, you have got the best funds covered. With age on your side and a commitment to invest for long term, I would second your opinion to give higher percentage to mid & small cap funds. In the long run, equities score much better than FDs or RDs which gives zero or even negative returns post-inflation.
In 1) take Franklin Bluechip India fund as its a good one, just like Quantum Long term equity. This way, you are diversified across fund houses as IDFC is covered in 4).
IDFC premier equity plan A is a good one to have and it is consistent. Keep a close watch on Rel growth because of its huge AUM >8000cr. It may not return as much as it used to, in the past. This fund has become more like a multi-cap fund (with a mid-cap tilt as of now), from its earlier tilt towards the mid & small cap.
As always, check back with us in 1 year's time. SIP on different dates of the month or different days of the week. Good luck!