POSTED BY April 5, 2012 1:08 pm COMMENTS (10)ON
I am an avid reader of this blog. I have a disposable income of 50000pm out of which i plan to invest 70% in equity MF. I was going through various websites including jagoinvestor for MF advice. I came across the ICICIdirect top picks in the march 12 report and their equity model portfolio. Can i replicate this SIP portfolio if i am just starting to invest. should fidelity be included in the portfolio in the light of L&T taking it over. Pl advise.
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10 replies on this article “how is the equity MF model portfolio of icicidirect”
Dear Yashvir, before start of your MF investments are your basics in right positions? I mean, emergency funding, Life insurance (read term plan for yourself), health insurance for you & your family members, The foundation of Debt in your over all portfolio………….
Dear Ashal, thanks for the reply. I am a defence officer. my emergency fund is 3mths expenses in a separate a/c, i have term insurance of 65L, which i plan to increase soon with an additional online term plan of 1Cr divided in two policies( AEGON/ HDFC/Kotak/Aviva/LIC online term whenever it launches). I have free comprehensive healthcare for my family and parents from the army medical corps. My portfolio is 95% debt( Defence service provident fund, FDs) till now which is the reason after reading this blog, i have realized my mistake of not investing in equities. Better late than never! I have cash flow budgeting in place, have chalked out my near term, mid term and long term goals, using various calculators available with this site and i have decided on the amount i have to spend p.m to realize those goals which also include a retirement corpus to complement my pension. So please advise me how to start a MF portfolio to take care of the equity component of my investment. I presently have 50,000 to invest pm out of which i am placing 15000 in DSOP( PF) and have 35000 for equity MF.
Dear Yashvir, Thanks for the update. In my opinion, you may start with only 2 MFs – HDFC Top 200 & Quantum Long Term Eq. fund. Are you aware that using I-direct for your MF SIPs ‘ll invite charge every month on your SIP. If you want to save on that charge, you may invest either http://www.fundsindia.com or http://www.moneysight.com
thanks. i am in the process of opening fundsindia account. i do not intend to use i-direct for MF. Will only 2 funds be appropriate, when most of the model portfolios i have seen on the net are 4-5 funds. i may be ignorant…. is it is easier to manage only 2 funds at a time for a beginner?
2 funds are enough. Do not worry about the number of funds.
Regarding model portfolios. Just watch every 2-3 months, how those model portfolios change. Think, can you change your portfolio so frequently.
Do not follow anyone blindly (whether that is some hi-fi advisor on TV, or some blogger, or someone like us on forums). Analyse things yourself. Educate yourself.
Ask why and how of things.
Past performance of both HDFC top 200 and equity have been very similar, hence a difficult choice. However i agree for a long term horizon mid-caps should be a part of one’s portfolio and hdfc equity offers that.
I am quizzical on this though- Would the top 200 companies that have been performing well and have good governance (imp factor) stand a better chance to perform a lot better (and grow as big as an Apple or Exxon) or mid-caps have far greater potential (Havell’s performance has been remarkable)?
Being in Top 200 does not imply good governance (eg Satyam).
My take is not restricting the fund manager is a better option. Though, other people may differ (its an individual choice).
5 funds are over-diversification. analyse the importance of funds and choose which are in line with what you want your portfolio to do.
eg. HDFC top 200 is a fairly conservative funds which is slightly restricted in mandate (only top 200 companies). while prima plus is another conservative fund, which is not so restricted. HDFC equity is an aggressive fund without restriction of hdfc top 200.
ICICI dynamic (not a great fund house, imo).
UTI opportunities (aggressive mandate, but not a great fund house).
Fidelity Equity (not a great future since fund managers will leave after some time).
If you are starting now, better avoid fidelity as of now.
If your invest horizon is 5years & above.Go for SIP and
Pick the 5 star rated funds from value research in each group( Large Cap, Mid cap, Multi Cap).