How r my fund selection?

POSTED BY Reveal All ON May 10, 2012 10:18 am COMMENTS (5)

Hello
I am 39 yrs old ,single and have been investing since 2 years in these Mutual Funds via SIP Monthly.
My time horizon is 15 yrs.

How is my portfolio? Does it need any correction?

Roughly how much can I generate from this portfolio.
Franklin India Blue Chip- Rs 4K

Hdfc Top 200- Rs 6k

IDFC Premiur Equity- 3K

ICICI Pru DIscovery Fund- 3k(will start this next month)

SBI Dynamic Bond Fund- 3K

Reliance Gold Saving Fund- 2K (Since last yr)

PPF – Rs 1.5 K

New Pension Scheme- Rs 3K

All r monthly SIPS…

R these funds Ok…do i need changes

Pls analyse my portfolio and suggest me accordingly..

Thanks…

5 replies on this article “How r my fund selection?”

  1. Reveal All says:

    Dear Ashal
    Thanks for the reply…Yes I m investing for my retirement..l..Remember we left our discussion in the middle at F.Book…Can u give me final picture of my portfolio with some important tips…Thanks again

    1. Dear Reveal all, as we were discussing the matter in pvt. chat, I w’d like to discuss there itself as & when both of us are available on FB at the same time.

      Thanks

      Ashal

  2. Dear Reveal all, IDFC Prem. Eq. & IPru Discovery both are mid cap oriented funds. In my opinion,. you should invest in only one of the 2 funds. As you are already investing in IDFC Prem. Eq. I w’d ask you to increase your amount there itself.

    By the way, are you saving for your retirement through all these things?

    Please clarify.

    Thanks

    Ashal

  3. Reveal All says:

    Thanks for ur advise Mr Bala Krishnan
    I do not have any liablities ,loans as such. I have a medical insurance also.

    Since my portfolio is very new…I am open to make changes if needed for the long run…My risk appetite is 75 %….So shall I cut down on some equity funds and increase exposure to debt .

    Pls tell me which funds should I drop and which one should I include as the portfolio is too new and I have not gone too far ahead with it…
    It would be appreciated if you give a detailed advice,process and procedures..I have gone thru ur rebalance articles..But as I am new…It was a bit techincal for me…So pls share that input here also seeing my portfolio..I mean what procedure should I adapt;

    Thanks
    Awaiting your response
    Regards
    have a good day

  4. I hope you don’t have money draining liabilities like a Car Loan/Credit card dues etc. If so close them first.

    You fund selection is good for wealth generation in general while I would not know it may necessarily be suited for you.

    I see you have 13k SIP in Euity funds now and will start 3k more. Assuming you have invested 13k already for 2 years and assuming a 6% return over the last 2 years your fund value must be INR 332,268.50 [=FV(0.5%,24,-13000,0,1) in excel].

    Thus assuming you now contribute 16k each month for 15 years then the future value assuming a CAGR of 12% would be INR 1,00,65,432.12 [=FV(1%,180,-16000,-332268.5,1) in excel] ~ 1 crore.

    Similarly:
    SBI Bond fund@ 9% post tax over 15 years = 11.43 lacs
    Gold at 7.5% over 15 years = 6.66 lacs
    I would recommend moving the NPS contributions to PPF instead. At 8% long term growth PPF corpus @ 4.5k per month=15.56 lacs

    All of these have an exit load/lock in period. So if you ever want to rebalance it will be difficult. Read in detail on Asset allocation and rebalancing at http://wp.me/p1Y418-24
    I would break the Bond fund contribution as 1000+2000 and move the latter to a scheme like HDFC Cash Mgmt. TAP – Monthly dividend to keep a part of the debt portfolio liquid.

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