Additional MFs to create a Portfolio

POSTED BY Debojyoti Das ON August 5, 2013 12:18 am COMMENTS (6)

dear Experts, 

Kindly thow light on the below 3 funds if it can be added to create a Balanced portfolio. 

1. ICICI Prudential Focused Bluechip (large cap ) – Rs 2500/month
2. HDFC Mid-cap opportunities (small/mid-cap) – Rs 2000/month
3. Tata Balanced – Rs 2500/month

I am currently having 02 funds already running – HDFC top 200 (6K/month) and QLTE (8K/month) along with PPF investments. I am purely looking for a long term horizon of more than 10 yrs for purpose of Child education and retirement corpus.

Kindly provide me any suitable funds if the above needs to be replaced in each category. I want to have my portfolio balanced so that i will just rebalance year-after-year without much change. Thank you always for guiding. 

best regards/debojyoti

6 replies on this article “Additional MFs to create a Portfolio”

  1. Debojyoti Das says:

    dear Ashal, Thank you for your response. That answers my query and resolves my confusion of whether to add more funds or not. Much appreciated you view as always. br-debojyoti

  2. Dear Debo, 2 pure Eq. funds are enough. If you are adding a balanced fund, you should not invest in PPF at all. The reason is 25-30% exposure is there in debt from your balanced fund. So net debt ‘ll be higher than the one you are planning.

    thanks

    Ashal

  3. Debojyoti Das says:

    Thank you Ashal for pointing out. But I am sorry to say that this Silent PF does not takes care much. Salaried employees like me who is changing organization in every couple of years, don’t have much liberty to have a bucket of PF which can be kept till retirement. As it is a very tedious process from EPFO, mostly many of us are withdrawing this as an when we are changing the company. Therefore, I am not looking into this at all. Either I am depositing the same money in PPF or in FDs.

    Kindly suggest your take on below:
    If monthy 30K(for simplicity rounded off), I have to invest for my goal in a ratio of 80:20(Equity:Debt), the break-up comes as 24K:6K. As mentioned above, if i utilize my PPF to fullest, approx 8K every month, then I think i am taking care of my Debt fund. Is that for Equity, 02 funds with 12K each is enough or a small portion of Balanced/Mid-cap/Liquid fund needs to be present? kindly clarify. In case not, is that my portfolio is Ok with 02 Large-cap Equity of 12K and 8K of PPF if time horizon is more than 10yrs away? Thanks.

  4. Dear Debo, what about the silent debt in your portfolio coming in from your PF being a salaried employee?

    thanks

    Ashal

  5. Debojyoti Das says:

    dear Ashal,
    Thank you so much for your reply…as always..i get to know many things from you…here is my answer- Till last year I was not using my PPF to whole extent which I opened in 2010. But this year I had invested 1L and i will continue 1L from next year till maturity for sure.
    COming to equity/debt ratio, as you know already based on your advice and reasearch I had started with HDFC T-200 and QLTF this year Feb, a monthly total of 14K. As per my calculation for all my Goals (Kid’s education, marriage and retirement), roughly around 28K should be my investment monthly which needs to be increased by 10% year after year.
    Now I want to have a balance portfolio. I am sure, the whole 28K cannot be put in equity. If I remove 8K per month which is going for PPF 1L/12, Can the rest can be put in Equity Large-cap funds or do I need to have Balanced fund/Debt component as well in portfolio. I am purely looking for 80:20 ratio currently. Kindly advice. Thank you Ashal.

  6. Dear Debojyoti, how much money do you want to invest in Eq. & Debt? Are you investing full 1L Rs. into PPF? If yes, how much yly inverstment is there in your Eq. funds?

    thanks

    Ashal

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