Advise on Mutual Fund Portfolio

POSTED BY Ramchandra Nathgosavi ON February 2, 2013 6:03 pm COMMENTS (9)

Sir,

 

I have four SIP’s namely HDFC Equity Growth, ICICI Pru Focused Bluechip Equity Reg-G, Reliance Equity Opportunities-G, Reliance Gold Savings-G with 1000/- SIP amount per month in each MF. I am investing in these MF’s from last 14 months

First 3 are giving 26%, 22%, 28% returns respectively. But 4th MF which is Reliance Gold saving fund-G has given 2.28% return till date. Also, I want to invest more in mutual funds. I want your advise on below:

1)     Shall I redeem my weak fund which is reliance gold saving or there would be chances of growth in this fund?

2)     Please do recommend the good mutual funds to invest. Shall I increase the SIP amount, as currently I am investing 1000 Rs per month in each fund? (I am ready to invest 6000-8000 per month in MF.)

 

Regards,

Ram

9 replies on this article “Advise on Mutual Fund Portfolio”

  1. Dear Ram, please contact contact the AMCs where you are investing already. Please ask for online investing. Please quote your existing folio no. Once your online investment is ready, please start investing in the same funds. Please start a SIP of say 2000 Rs. in HDFC Eq. & once this online direct investing is smooth for you, please stop that offline investing started by friend’s friend.

    Thanks

    Ashal

  2. Ramchandra Nathgosavi says:

    Thanks to both, Free Financial Calculators & Mr. Ashal Jauhari, for giving the guidance!!
    I have been advised above that to dont go for new funds but just adjust the SIP amount. Can I do that & how?

    Dear Mr Ashal,
    Honestly speaking, there was no such goal when I did this investment but now I have some financial goals to be achieve.

    Regards,
    Ram

    1. Dear Ramchandra, I like your honesty to answer. Well no matter you started with out a purpose. Now is the time to write down your purpose & then move ahead. Please increase your SIP amount in your existing fund as per your goals & cashflow position.

      Thanks

      Ashal

      1. Ramchandra Nathgosavi says:

        Thanks!! But I really dont understand how I can adjust my SIP amount. please can you explain me in detail the procedure for that. I want to increase the amount on each fund. I have invested through one of my friend’s friend. Now I want to invest by my own.

        Thanks,
        Ram

  3. Dear Ramchandra, on what count you selected these 4 funds? what are your goals & expectations from these funds? Are you investing for a purpose or just for the sake of investment?

    Thanks

    Ashal

  4. Raj says:

    Hi,

    I think you should build a good portfolio having 4 types of funds for long term investment:-

    1 Large cap fund
    1 Diversified equity fund
    1 Mid cap fund
    1 Gold ETF

    Your equity fund choices are good but they overlap so there is little point of investing in all 3. Keep ICICI and Reliance for the 2 categories and you can shift to HDFC Mid Cap. For gold ETF any good one will do, you can try Kotak.

    Regards
    Raj

  5. investing has to be done with goals in mind. List your goals and separate them into short and long term goals. Use MFs for long term (greater than 5 years) goals.

    You have good funds. Get rid of the gold saving fund or decrease the sip amt.

    For any goal you should have about 2 funds which are large-cap (60-70%) equity component and rest in mid and small-cap component. There is no need for new funds. Just adjust your SIP amt according to this.

    Find our how you need to invest for each goals accordingly,

    Use this to optimize your goal investment amt.

    http://freefincal.wordpress.com/goal-planning/optimize-your-goal-investment-amount/

    You can also find a step-by-step to choosing a MF there.

    Limit your gold exposure to about 10% of your portfolio. Most experienced investors stay away from gold although its not a bad idea to have about 10%

    1. Ramchandra Nathgosavi says:

      I have been advised above that to dont go for new funds but just adjust the SIP amount. Can I do that & how? Pls advise

      Thanks,
      Ram

      1. The simplest thing to do is to continue your SIPs and each month buy a little more units from the same fund. For example if you have 1000 in HDFC equity, buy say another 2000 in that fund each month in a disciplined manner. You can either do this online or if you have an account with a distributor like FundsIndia this maybe easier.

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