Mutual Fund portfolio building:Help me choose from list

[ajayrawatuki]

Based on my risk profile I have planned my investment as follows
20% PPF and rest 80% Mutual Funds

Out of Mutual funds the distribution in various funds category is as follows.
I would be starting a SIP in equal amounts in each fund.
40% in mid/small cap.

40% large cap.

20% balanced fund.

Suggest me based on the fund house and investment portfolio of following funds.

1. small/mid cap
Any two of following funds

1.DSP BlackRock Micro Cap Fund - Regular Plan (G)
2.ICICI Pru Discovery Fund (G)
3.IDFC Premier Equity Fund - Plan A (G)
4.DSP BlackRock Small and Mid Cap Fund (G)
5.HDFC Mid-Cap Opportunities Fund (G)
6.ING Dividend Yield Fund (G)
7.Birla Sun Life Dividend Yield Plus (G)


2. Large Cap funds.
Any two of following funds

1.HDFC Top 200 Fund (G)
2.UTI Dividend Yield Fund (G)
3.ICICI Pru Dynamic Plan (G)
4.Reliance Regular Savings Fund - Equity Option (G).

3.Balanced funds
Any one of following

1.Reliance Regular Savings Fund - Balanced Option (G)
2.HDFC Balanced Fund (G)

 

[yodlee99]

All your selections are good. For balanced fund, you can pick either of the 2. Both HDFC prudence and Reliance RSF are good.
My large cap picks are HDFC Top 200 along with either Birla Sl Frontline equity A or DSPBR Equity.

Why do you need 2 mid/small cap picks? If I were you, I would prefer 1 mid&small cap picks along with 2 large cap picks... depends on your risk profile. But remember 2008, when sensex drops, it takes all the mid&small caps down with it and they continue going down longer. It also takes time to recover. That is my way of thinking.... In that space, I would bet on IDFC Small & Midcap Equity Fund. In any case, you got to keep a close watch on the returns and change it, if needed every 6 months.
In general, keep a tab on performance every 6months/1 year and increase SIP if possible every year. Good luck!

 

[drsambu123]

Hi i think you might have decided the funds?
Some suggestions.
Do not choose more than 4 or 5 funds
Do not select more than 1 fund from same AMC
Do not select too many SIP dates( cumbersome to allocate funds)
Do not shift the fund for short term under performane
Do not stop the SIP if market falls( if possible increase the SIP amount).
Have long term view
happy investing

 

[ajayrawatuki]

All your selections are good. For balanced fund, you can pick either of the 2. Both HDFC prudence and Reliance RSF are good.
My large cap picks are HDFC Top 200 along with either Birla Sl Frontline equity A or DSPBR Equity.

Why do you need 2 mid/small cap picks? If I were you, I would prefer 1 mid&small cap picks along with 2 large cap picks... depends on your risk profile. But remember 2008, when sensex drops, it takes all the mid&small caps down with it and they continue going down longer. It also takes time to recover. That is my way of thinking.... In that space, I would bet on IDFC Small & Midcap Equity Fund. In any case, you got to keep a close watch on the returns and change it, if needed every 6 months.
In general, keep a tab on performance every 6months/1 year and increase SIP if possible every year. Good luck!

Thanks for advice.
I am willing to take risks on small/mid cap so I think thats fine.
Yes I would be buying all funds using HDFC investment service account so tracking funds would not be an issue.

 

[ajayrawatuki]

Hi i think you might have decided the funds?
Some suggestions.
Do not choose more than 4 or 5 funds
Do not select more than 1 fund from same AMC
Do not select too many SIP dates( cumbersome to allocate funds)
Do not shift the fund for short term under performane
Do not stop the SIP if market falls( if possible increase the SIP amount).
Have long term view
happy investing

Thanks for guidelines.
I have yet not decided but I do agree with most of points you mentioned
Regarding SIP dates isn't it a good idea to buy different funds at different dates.
Since I would be buying funds online using HDFC investment account its much easier for me to manage all funds provided I have enough money to take care of all SIPS

 

[URPradhan]

Thanks for guidelines.
I have yet not decided but I do agree with most of points you mentioned
Regarding SIP dates isn't it a good idea to buy different funds at different dates.
Since I would be buying funds online using HDFC investment account its much easier for me to manage all funds provided I have enough money to take care of all SIPS

Its always better to choose different dates of a month for different SIPs. In other words you are again averaging the SIP.

Again, ONLINE investment is THE BEST once you have the folio number and PIN. No doubt first time you have to goto the AMC for parer work but after that throughout your life you will have peace of mind and freedom to do anything you want by 24x7 - 365 days !!! Never ever goto brokers/channel distributors like ICICI direct, they will deduct Rs 33.09 for each SIP every month

 

[drsambu123]

Thanks for guidelines.
I have yet not decided but I do agree with most of points you mentioned
Regarding SIP dates isn't it a good idea to buy different funds at different dates.
Since I would be buying funds online using HDFC investment account its much easier for me to manage all funds provided I have enough money to take care of all SIPS

As for as the NAV of fund is concerned it doesnt fluctuate like a stock. In long run its not a big deal. But if u r particular about that u can go ahead...
Nothing wrong

 

[yodlee99]

Since you mentioned you are going to go via HDFC securities, learn about their FlexSTP plan. You can put some money into their liquid funds (eg. HDFC Hi Interest Short Term plan) and move it systematically into their diversified fund like HDFC Top 200 or HDFC Equity or HDFC Prudence plan. The key in their flex plan is that it automatically invests more when the NAV of the fund goes down and invests less when the NAV goes higher. This looks like a better use of technology & a smarter way than auto SIP that you are already familiar with. However, only time will tell how much of a bigger pie you get at the end.
Good luck!