Is this portfolio best to be untouched for long for excellent results

[d.jain10]

Hi,
I would like to know the mutual funds those which I have in my portfolio are sensable in keeping them? I do not trade at all . I have just purchased and kept them for along period? The list is:-

ICICI Prudential Equity and Derivatives Fund - Wealth Optimiser Plan - Equity - Diversified

SBI Magnum One India Fund - Equity - Diversified

SBI Magnum Sector Funds Umbrella - Contra - Equity - Diversified

DSP ML Tiger Fund - Equity - Diversified

Franklin Asian Equity Fund - Equity - Diversified

ICICI Prudential Real Estate Securities Fund - Debt - Income

UTI Infrastructure Advantage Fund - Series 1 - Equity - Diversified

Sundaram BNP Paribas Select Thematic Energy Opportunities - Equity - Diversified

DSP ML Tax Saver Fund - Equity - ELSS

ICICI Prudential Infrastructure Fund - Equity - Sector Fund

Birla Sun Life Special Situations Fund - Equity - Diversified

PLEASE LET ME KNOW

 

[chattogeorge]

FIrst of you should understad that mutual funds are not stocks... already each mutual fund is investing in 30+ stocks and if you select 10-15 mutual funds then its like investing in an index fund like S&P500. Then better off invest in that fund and get advantage of less expense ration.

As it is dont trade in mutual fund like stocks. Keep invested for long term. But its important that you book profit periodically.

Search for rebalncing of MF portfoilio. You will get to know how to do that.

Or you can opt for divident payout and invest those dividents in debt funds and trandfer into equity mutual funds during correction. But if you leave your investments untouched, in every correction of market you will be taken to the state where you are...still you will be getting gains but not par with the risk you are taking.


Better for you is to

* set an asset allocation b/w equity and debt
*choose 4-5 equity mutual funds and debt funds of same AMC
- if direct taxcode is implemented from April 2011 then no use of tax saver funds.
*set a target for returns like 15-20% per yr for equity and 7-10% for debt before tax
*do portfoio rebalncing by keeping(Switch units b/w eqty and debt funds) asset allocation decided
- every year
or
- portfolio delivers target returns

Regards,

George

 

[milind]

Hi,
I would like to know the mutual funds those which I have in my portfolio are sensable in keeping them? I do not trade at all . I have just purchased and kept them for along period? The list is:-

ICICI Prudential Equity and Derivatives Fund - Wealth Optimiser Plan - Equity - Diversified

SBI Magnum One India Fund - Equity - Diversified

SBI Magnum Sector Funds Umbrella - Contra - Equity - Diversified

DSP ML Tiger Fund - Equity - Diversified

Franklin Asian Equity Fund - Equity - Diversified

ICICI Prudential Real Estate Securities Fund - Debt - Income

UTI Infrastructure Advantage Fund - Series 1 - Equity - Diversified

Sundaram BNP Paribas Select Thematic Energy Opportunities - Equity - Diversified

DSP ML Tax Saver Fund - Equity - ELSS

ICICI Prudential Infrastructure Fund - Equity - Sector Fund

Birla Sun Life Special Situations Fund - Equity - Diversified

PLEASE LET ME KNOW

I see too many sector/theme funds in this portfolio - Infrastructure, real estate, asia, energy. Bulk of your equity holdings should be in good 5* diversified funds, and a smaller allocation (if at all) in sector funds. Sector funds tend to be fads which go away after a year or two. And yes, debt component is very important - may it be in debt mutual funds or in FDs, post office or wherever.

I would recommend you to look up value research material and use their 5* diversified funds with long history as your core holdings.

--

 

[kenfrapin]

This portfolio has no guarantee of long term returns above average.
Too many NFOs and sector based funds and too many funds in general

If you like having a good distribution of funds then
1. Choose a max of 8 funds.
2. For Long term, chose 4 well diversified, 2 balanced and 2 sectors/opportunites funds
3. Go for funds with good track of atleast 3 years or preferably 5 years
4. Check to see the same fund managers are not across your MFs. You can invest in Funds from the same house but keep the managers different

Long term you still need to check how the funds are faring atleast every 3 to 5 years else you may lose out in the long run

Cheers
KP