Advise on Mutual Fund Allocation

POSTED BY Shashi Ganti ON April 24, 2013 9:49 am COMMENTS (4)

 

Hi

Am currently invested in the following funds through monthly SIP(Rs. 12,000 per month) –

Am investing for Long Term(10- 15 years) and am 29 years of age

  1. Franklin Bluechip Growth Fund – Rs. 3000 per month
  2. UTI Opportunities Growth Fund – Rs. 3000 per month
  3. IDFC Premier Equity Plan A Growth Fund – Rs. 2000 per month
  4. HDFC Balanced Growth Fund – Rs. 2000 per month
  5. HDFC Prudence Growth Fund – Rs. 2000 per month

I want to increase my monthly investment to Rs. 20000 per month. Please advise on how to allocate these additional Rs. 8000 per month i.e which of the above funds i should select

Also, please let me know if you think if i have too many funds in my portfolio and need to drop 1. If yes, which one should i drop

Thanks a lot for your advise

Regards,

Shashi

 

4 replies on this article “Advise on Mutual Fund Allocation”

  1. Dear Shashi, please stop investing in 1 fund & keep holding the units as of now. Increase the SIP amount into your remaining funds.

    thanks

    Ashal

  2. Dear Shashi, I can understand fund no. 1, 2, 3 but why 4 & 5 both are there? Please explain.

    Are you having PF & PPF? If yes please specify, how much you are investing in both cases.

    Thanks

    Ashal

    1. Shashi Ganti says:

      Hi Ashal – Since this was my first experience investing in mutual funds i wanted to have 2 balanced funds . I went through the performance history of both these funds and liked them for their invidividual characteristics i.e HDFC balanced for consistent performance and Prudence for its aggressive nature despite being a balanced fund. I do have PF and invest moderately in PPF as well

      However i do feel that having both these funds are redundant and will have unnecessary overlaps in portfolio. I want to drop one as soon as i complete 1 year of investment(to avoid exit load)

      Please suggest which one i should drop? Balanced or Prudence?

      My investment horizon is in range of 15 years and am not averse to risk exposure

      Any other suggestions on my mutual fund portfolio are also welcome. Many Thanks

  3. No need for 4 and 5. Just go with 4 as it is less riskier of the two.

    If I were you I will Increase contribution to 1,2 and 4 alone equally

    There are many many ways to do this. No one can say which is perfect. Depends more on the time frame of the goal in this case then your risk appetite

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