guidance on MUTUAL FUND portfolio

POSTED BY DR SUNDEEP NIGAM ON May 10, 2011 2:46 pm ONE COMMENT

Sir
i am 41 yrs old in government service. I am investing
rs 6000 per month in my gpf account
rs 2300 per month in icici ulip
rs rs 2000 per month in idfc prem eq
rs 2000 per month in hdfc eq,
rs 2000 per month hdfc top 200,
rs 2000 per month in icici pru focus blue chip fund
rs 1000 per month franklin blue chip fund
rs 1000 in uti dividend yield,rs 1000
rs 1000 per month in birla sun life dividend yield grth plan. Some financial adviser advised me to change my portfolio to as under-

proposed monthly investment outflow `/month
gpf - rs 6000
husband ulip -833/pm
wife ulip - 1500/pm

SOME EXPERT advised changes equity funds* `/month investment is as under--
gold funds- -3000/pm
dspbr top 100 equity reg 2000
franklin india bluechip 1000
idfc premier equity 2000
birla sun life dividend yield plus 2000
hdfc equity 1000
birla sun life mnc 1000
fidelity equity 2000
hdfc index sensex plus 1000

please advise me should i change my portfolio??

One reply on this article “guidance on MUTUAL FUND portfolio”

  1. Ramesh says:

    a little analysis:

    6k in debt (gpf).

    3k in mid-small cap fund (idfc premier equity and BSL dyplus)
    2k in multicap (hdfc eq)
    6k in large cap.
    = 11k in equity

    the 2300k in icici ulip is in which fund, so didnt add. But suppose it is in equity, then the net equity investment is 13300 per month.

    A lot of suppositions:
    1. I would guess, you dont have adequate life insurance. So get one sufficient to protect the financial dependents.
    2. I would guess, you have got enough emergency funds and health insurance.

    Coming to final recommendations:
    Out of the 20k you invest every month,
    1. 6k in gpf is more than enough.
    2. 2300 in ulip – i think you cant decrease it. and increasing it with some premium allocation charge doesnt help you. so keep it as it is. Just make sure you put it in the equity funds.
    3. Keep 1 large cap (my pref=franklin blue chip), 1 multicap (hdfc equity) and 1 mid-small cap (idfc premier equity), in the ratio of 6k, 3k, 2k. That means consolidate your large cap funds in one, consolidate bsl dyplus into hdfc equity and keep idfc premier eq as it is.

    – Keeping more than 3-4 funds is detrimental both for returns as well as for its a headache to manage them.
    – Gold funds should not be a part of one’s portfolio (Equities will tend to provide much better returns in the long run).
    – Always strive to minimize churning and unnecessary changes.

    Another approach is to get 2 multicaps like (fidelity / hdfc equity ) and (templeton india equity income / templeton india growth) and a mid-small cap like idfc premier equity, in the ratio of 4k,4k,3k. But this would not force you to change a lot of funds.

    Hope this helps you.
    Ramesh

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