Can you comment on my Portfolio and given suggestions ?

POSTED BY tejasubhi8586 ON December 1, 2013 10:56 pm COMMENTS (19)

Hi Manish,

you have been doing a great job helping novice investors to direct their hard earned money into proper avenues. Thank you so much.

I am 28 yrs old,married and had a son 8 months ago. I have not invested a single penny till now. I am new to MF investing. I am planning for a 50 lac corpus for my childs education and marriage and an other 1.5 cr for retirement (I would like to work till 60 providing Gods grace is with me).

My current monthly income is about 59K in hand. My household expenses would be around 20-25K. I am planning to buy a plot which I am expecting would eat about 22000/m from my salary. I am planning to invest Rs.2500/m in PPF and Rs.6500/m in MFs. My split would be:

Large Cap: Quantum Long Term Equity Fund (G)- 2000 & ICICI Pru Focussed Blue Chip (G) – 2000

Equity Diversified:  ICICI Pru Dynamic Plan (G) – 1500  (My other choices here are SBI Magnum Global Fund, ICICI Pru Discovery, BNP Paribas Midcap)

Balanced: HDFC Balanced – 1000 (My other choices here are HDFC Prudence and ICICI Pru Balanced)

Please comment on my portfolio and I anticipate your valuable suggestions. All the above in terms of SIPs. I am planning to take a term insurance fo 50lac from LIC (Amulaya Jeevan) or ICICI Pru. Would 50lacs be sufficiently. I currently have some 3lacs in cash which I might use for the plot I am planning to buy otherwise I am not sure where to invest also. Please help.

Please direct me in my investment plan so that I can reach my goals in about 20 years. Thanks in advance.

19 replies on this article “Can you comment on my Portfolio and given suggestions ?”

  1. ashalanshu says:

    Dear Tejas, do some more research on tell me the portfolio of a balanced fund of your choice and put it in comparison with the large cap fund of your choice. Now check are you really diversified or just overlaping your stocks in the 2 funds.

    Thanks

    Ashal

  2. tejasubhi8586 says:

    The only reason is to “diversify and win”…I felt investing all the money in one category is risky (from the research I did)…But If you have a way out for that, please let me know…Large Cap seems to be a little safer avenue..So I want invest 60% in that…20% in balanced…and 20% in mid and small…

    I am Mutual Fund rookie by the way…my analysis might seem nonsense..Please help me out…

  3. ashalanshu says:

    Dear Tejas, why do you want to invest in so many funds? Any specific reason of this?

    Thanks

    Ashal

  4. tejasubhi8586 says:

    Hi Ashal,

    Thanks for your instant response…I am little confused with these Cap categories may be because I was going through different resources like Morning star, ValueResearch,etc. while making the choices.

    Let me put my choices here again (revised):

    Large Cap: ICICI Focussed Bluechip, DSP BR Top 100 equity, HDFC Top 200, Franklin India Bluechip, UTI Equity (I know that you opted for HDFC Top200…can you please let me know your opinion about other funds here?)

    Large and Mid Cap: ICICI Prudential Dynamic, Quantum Long Term Equity

    Mid and Small Cap: HDFC Midcap Opportunities, SBI Magnum Global, SBI Magnum Midcap, IDFC Premier Equity, Franklin India smaller companies

    Balanced: HDFC Balanced, HDFC Prudence, ICICI Prudential Balanced (I personally felt HDFC Balanced will do better)

    Can you please help me pick 1 from each of these categories?

    Any idea about Tata Ethical (Multi Cap) plan?

  5. ashalanshu says:

    Dear Tejas, if you feel a balanced fund should be there, you are free to chose any balanced fund of your choice. By the way, what do you mean by Diversified fund? Are HDFC Top 200 and QLTEF are not diversified funds? If you are talking about multicap fund, you may opt QLTEF.

    Thanks

    Ashal

  6. tejasubhi8586 says:

    great…I too like HDFC Top200…Prashanth Jain is known to be one of those very few prudent fund managers…

    So you don’t want me to invest in Diversified or Balanced funds?

  7. ashalanshu says:

    Dear Tejas, I’m investing my personal money into HDFC Top 200 and Quantum Long Term. Eq. fund. You are free to draw any conclusion from my disclosure. 🙂

    thanks

    Ashal

  8. tejasubhi8586 says:

    Hi Ashal,

    Yes Indeed! I have gone through the whole discussion between you and Sowmi. Thanks so much both of you for clearing a lot of doubts that prevailed in my mind since a long term as far as Term Insurance, HI insurance, NPS and PPF are concerned…

    If I had toinvest in Mutual Funds, then what would be your suggestions on my portfolio…Please help me…

  9. ashalanshu says:

    Dear Tejas, did you read the shared discussion? if yes, what is your learning from that about your own financial planning?

    thanks

    Ashal

  10. tejasubhi8586 says:

    Rahul,

    I cannot deny any of your comments on finance planning…I thank you so much for your guidance…

    But, with a little bit of optimistic attitude (expecting 10-12% return in 15 yrs),

    Ashal,

    Can you please comment on my portfolio and also suggest any changes if needed?

    I have also gone though some other funds and their long term performance…

    I liked TATA Ethical Plan in Multi Cap, Franklin India Blue Chip and DSP BR top 100 equity in Large Cap…Any comments on UTI opportunities and UTI Equity?

    Thanks in advance…

  11. kuntal says:

    Dear Rahul,
    Please stop posing as an expert! I know I sound rude, but please spare us & give us a break. We are better off learning from experts like Ashal.
    Thanks,
    Kuntal.

  12. kuntal says:

    Dear Rahul,
    I do not want to argue.
    Let me (or all of us on Jagoinvestor) be in peace with what we believe (backed by Statistical Data), U can stay with what U believe. It’s a bit like Political leaders saying that English is harmful for our children & economy! We all know the truth- dont we?
    Thanks,
    Kuntal.

    1. rahul123 says:

      Context is everything!

      Rahul

      1. kuntal says:

        Dear Rahul,
        Could U elaborate?
        Thanks,
        Kuntal.

        1. rahul123 says:

          your comment is out of context….

  13. rahul123 says:

    Dear Kuntal,

    I am not completely against equities, what i am saying is that – meet your financial obligations/needs and then only invest in stock market. I believe stock market is not for salaried persons (age upto 40 years), after 40 years a person is more stabilize financially and can take risk till 50th year….and if you think market will give you 10-15% CAGR over next 10-20 years then it doesn’t matter if somebody invest at 1st year or at 30th year, market will give your 10-15 returns for those who will invest after 10 or say 20 years. And hence i will not change my opinion for salaried person.

    You can read about our ongoing discussion here:

    https://www.jagoinvestor.com/forum/why-should-retail-investor-trust-indian-equitycommodity-market

    Please add on to this if you have more convincing theory for it.

    Thanks,
    Rahul

  14. kuntal says:

    Dear Rahul,
    Dont get me wrong, but you are more in need of financial advice than tejasubhi8586. MF is not gambling. If Conumer inflation is 10-11%, how can Capital be preserved with 8-9% returns. Please take a month’s time to go through queries in
    this forum- revert back to experts like Ashal, in case u have any queries then.
    Thanks,
    Kuntal.

  15. rahul123 says:

    No need to invest in MF, PPF works best if you utilize them fully.

    Salaried persons have many obligations and for that they require money at regular period. Preservation of capital with 8-9% return is much better than risky returns in equity market.

    If you ask me, i will advise not to invest in equity market (MF included) ….invest in equity only if you meet all your financial obligations and have some surplus cash

  16. ashalanshu says:

    Dear Teja, please read the below discussion first.

    jagoinvestor. com/forum/finacial-planning-faqs

    Thanks

    Ashal

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