Franklin India Blue Chip Or ICICI Focused Blue Chip

POSTED BY Avanti ON February 20, 2012 2:51 pm COMMENTS (4)

Dear Friends,
My Mutual Fund investment is as follows
i) Franklin India Blue Chip (SIP) – 5000
ii) HDFC Top 200 (SIP) – 3000
iii) Quantum Long Term Equity (SIP) – 3000
iv) HDFC Prudence (SIP) – 2000

My Queries are

i) Is my Mutual Fund selection is good?
ii) If I compare Franklin India Blue Chip to ICICI Focused Blue Chip (Rel) ; Performance of ICICI is better than Franklin. Should I switch from Franklin to ICICI?
iii) I want to invest more 2 K amount in SIP.

Should I increase Franklin India Blue Chip / ICICI SIP?
Or will go with other category of Fund?

Thanks,
Avanti

4 replies on this article “Franklin India Blue Chip Or ICICI Focused Blue Chip”

  1. Dear Avanti, Your basic query for investment is already answered by dear BanyanFA. I’m trying to focus on your home purchase one.

    Please indicate – Total cost of house you are looking for, Your part, loan part, how much money you have ready & what’s the short fall for home purchase own money?

    Thanks

    Ashal

  2. BanyanFA says:

    Hi Avanti,
    Thanks for the update. I was exactly after this level of details. Helps to structure the opinion.

    I am glad to see that :
    1. you have an adequate level of life cover;
    2. You have covered your health as well;
    3. You are contributing to PPF and your PF level is healthy.

    You also contribute a healthy amount towards debt portion of your portfolio via RD, PPF PF.

    Considering that your total monthly debt investment is around 18-20K and considering your current age and investment criteria, you should rejig your SIPs on the following lines:

    1. Large caps – 30% – such as HDFC Top 200, Franklin Blue chips, etc.;
    2. Mid Cap / Multi Caps – 50 to 60% – such as HDFC Mid Cap, HDFC Equity, ICICI Discovery, BSL Dividend Yield, etc.
    3. Small Cap / Sector – 10-20% : such as DSP BR Micro Cap Fund or Reliance Banking Fund

    Avoid Balanced funds such as HDFC Prudence as you already have a significant portion being invested into debt. Rationale behind Mid & Small caps is that they provide the maximum return in long term. Since your investment tenure is over 10 years, the level of risk via SIPs becomes negligible.

    Regards
    Banyan Financial Advisors

  3. Avanti says:

    Dear BanyanFA,

    U r right, my mistake.
    My personal details are as follows:

    My age 27 yrs.
    My Husband’s age is 29.

    We both are working.

    Our Both income is 65 – 68 K.

    Total Monthly Expenses: 9- 10 K

    Insurance:

    Term Plan
    Husband: 60 Lac HDFC Click To Protect
    My self: 40 Lac Aviva

    Health Insurance
    Husband : 3 Lac
    My self: 3 Lac
    Father in Law: 3 Lac

    PA

    Husband : 10 Lac
    My self: 10 Lac

    Monthly Investment as follows
    Both PF: 7000
    MF: 13000
    RD: 7000 @ 10.25 %
    Emergency Fund: 5000

    Quarterly Investment:
    Purchase Gold in Physical form: 5000

    Yearly Investment
    PPF: Put lump sum amount of 50000 @ start of FY

    Planning to purchase a Home in this Year. For that we will take a Home Loan.

    And main thing we both wants to continue these SIP for next 15-20 Years.

    Thanks,

    Regards,
    Avanti

  4. BanyanFA says:

    Hi Avanti,
    It is difficult to comment on your fund selection, unless you throw more light on your financial situation. A fund can be a good one, but still not good for a person’s financial plan.

    Could you highlight your approx monthly savings (your+ your family) and out of which how much can you part for around 10 years. Any liabilities which you forsee. Contribution to PPF, PF, etc.

    Regards
    BFA

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