Fund portfolio review pls

POSTED BY Hema V ON August 1, 2012 3:08 pm COMMENTS (6)

Hi,

I have two questions

1) For long term investment for my hubby , 38yrs.

I have selected following funds, pls evaluate below SIP

HDFC Taxsaver – 5k -already Investing
DSPBR Top 100 – 5k – planning to invest
HDFC Prudence – 5k -planning to invest

Term plan is also with hdfc.

2) For long term for my brother who is just starting to invest in equity, pls suggest any one fund to start with?

6 replies on this article “Fund portfolio review pls”

  1. hema.vis@gmail.com says:

    Thanks ashal and Ramesh for your advices.I was aware of those calculations. I posed the question because we may actually not need a tax saver since we already filled it through other options like ppf, policies and principal repayment.

    so just clarified if having a tax saver is bad returns compared to other equities…accord to Ramesh, tax saver is also decent fund, so will continue in that..

    Thanks again!

    1. Ramesh says:

      The only bad thing in that respect is that your money is locked.

      Though, that canbe a good thing too, if you yourself are not very disciplined in your approach. Sometimes, it is better to save money from yourself, kind of thing.

      Ramesh

  2. hema.vis@gmail.com says:

    Thanks Ramesh for your advice.

    so you mean to say that if I have other ways of filling up 80C , ther are better funds than hdfc tax saver? If so, what are they?

    Anyways, I think we are locked in for three years. But answer to this would be helpful for my brother at least.

    1. Ramesh says:

      You got a wrong impression.

      Eg, if your husband has life insurance policies of say 50k in this financial year, then you need to make sure you fill up the rest of the 50k limit by HDFC Taxsaver within this financial year. So in the next 8 months (Aug-Mar), you need to put that 50k (about 6k a month) and putting 5k will not fill the complete quota.

      With other values, you need to adjust accordingly. Only after you have calculated the proper amount and set that SIP in the HDFC Taxsaver fund, you should start to put the extra money in other equity funds.

      There is absolutely no point in your putting money in an equity fund, without having completed the 80C limit in an ELSS.

      Regarding particularly HDFC Taxsaver, it is a very decent fund and there is no need to change it to any other.

      The only other option worth considering at present is Franklin Taxshield, in my opinion. There is nothing to choose in between the two, so you should not start to have doubts in those regards. I mentioned this in terms of if your brother wants to have Franklin Prima Plus, then this fund will be easier to have in the portfolio (same fund house).

    2. Dear Hema, To get the answer for Tax saver funds investments, calculate this way –

      A. Eligible 80C amount = 100000

      B. EPF amount =

      C. PPF Amount =

      D. Home loan principal repayment =

      E. Children Tuition fee =

      F. Life Insurance prem. =

      G. Pension Plan or NPS contribution =

      & many more

      Now add B+C+D+…….

      Now calculate A – (B+C+D+…….) = This residual amount is your target for tax saver funds.

      Thanks

      Ashal

  3. Ramesh says:

    For HDFC Taxsaver, make sure you invest according to the gap in the 80C requirement of your husband and within this financial year (till 31st March 2013).

    The combination of DSP Top 100 and HDFC Prudence is a very good one. Start it.

    For your brother too, the same combination is a good one. And if you want a single fund, go with the all weather all type fund = DSP Equity or Franklin Prima Plus.

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