how to

POSTED BY Jig ON January 2, 2012 7:51 pm COMMENTS (24)


Hello all readers, I want to help one my relative who is investing in MFs since last few years. When i checked his MF investment details i found more than 30 funds in his list. I am attaching a excel list also for your reference. some of them are SIP and most of them are lumsum investment. His advisor suggest them to invest them whenever he invested. With looking at list , i am totally confused that how to help him in such market condition? I am just requesting you guys ( the expert ) to look once and please please please suggest what can be done with such long list of investments. what can be short and ease solution to keep it simple. Investor details are as under: he is 48 Yr old. Having a son studying in 10th and daughter doing Masters. Nearest Goal: Daughter Marriage Son Higher Education : 3 Yrs your any kind of comments and suggestion are most welcomed Thanks

24 replies on this article “how to”

  1. Dear Jig, as the time frame for both these goals is short term in nature i.e. within 1-3 years, All Eq. portfolio is not good. My take ‘ll be to shift a major part of the money in to a hybrid fund like HDFC MIP Long Term Plan. The Eq. portion is restricted to normally 20% thus it fits well for the desired time frame. A simple approach –

    Say for marriage 7L Rs. is the target amount. Invest 6L Rs. from the MF corpus to the above fund. With an average growth rate of 8-9%, the 6L Rs. amount can easily fetch the goal amount. Similar is the case of son’s education.

    Any left over in the investment amount should be invested in the Eq. funds discussed in the folio sheet.



  2. Jig says:

    Daughter Marriage will be withink 1 to 2 yr. He has no other investment towards Retirement too except real estate.

  3. Dear Jig, What’s the time frame for D’ter’s marriage say 3Y or 5Y or 7Y?

    The answer ‘ll change based upon the input. As the Son’s education is just 3Y away, an all Eq. portfolio is not good.



  4. Jig says:

    Your recommendations are good. Will it be ok to implement the same for person aged 48 whose nearly goal is daughter marriage and 3 Yrs goal is son higher education?


  5. Dear Jig, Please take your own time to respond.



  6. Jig says:

    Dear Ashal,
    thank you very very much for your time spend and excellent effort.
    I will sure go through the comments and will come back with queries if any..

    thanks once again



  7. Dear Jig, I have already uploaded my view on the consolidation of the MFs in the attached file in my prev. reply.



  8. Jig says:

    Dear Ashal,Manish,Ramesh,
    Can you please comment on this excel file.



  9. Dear Jig, please check the attached file for my take on consolidation of the funds.



  10. The File uploaded by a person first times mostly goes for my approval , I have approved it now


  11. Jig says:

    Can i have your id?


  12. Dear Jig, please mail your file to me & on your behalf I ‘ll try to load up the file.



  13. Jig says:

    I have tried 3 times to reply with File but it couldnt reflect here. when i logged in i can see my all answers but without log in my reply are not seen which include file too.
    I cant understand what is wrong in it? 🙁

  14. Jig says:

    Dear Ashal,
    I have uploaded the file in earlier reply. Also uploading the file again herewith

    Thanks to all for spare your valuable time.


  15. Jig says:

    Dear Ashal,
    I have uploaded the file in my earlier reply.
    thanks to all for spare your time


  16. Dear Jig, If you arfe still facing problem to load that exl sheet, you may do one thing – just post the name of those 30 funds.

    We ‘ll try to prune down the list keeping in mind the requirements & situation of the person in question.



  17. Jig says:

    Dear Prabir,
    thanks for your view.
    Can you please explain in simple terms about what would be the solution. How to achieve it with simple steps.

    1. You may hire a professional & qualified financial Advisor. He took care all of this.Simply Plan
      Your Finances in proper manner.

      Prabir Sharma
      M/s. Feel Bureau Of Financial Planning.

      1. Jig says:

        Thank you very much Mr Prabir for Information.

  18. Last 5 yrs performance of a Large cap Funds & a Mid cap Funds are similar.Small cap funds quite different if your time horizon is 20 yrs plus. I had already add debt as a contingency so there is no requirement of any balance fund.

    SIP & STP’s are simple term of accumulation not for process of Investments.I used valuation for Restructuring my asset allocation.
    Lastly very thanks to manish.

    Prabir Sharma
    M/s. Feel Bureau Of Financial Planning.

  19. Jig says:

    Ohh yeah,
    I find the place now.
    For information to all of you that he is not my client and i am not an advisor or planner. I just got knowledge about financial planning and requirement through this blogs and very very thanks to manish to educate regarding this.
    I want to share this knowledge to others needy and required persons. I came across this folio and would like to guide him in correct direction.

    dears, thanks to you for reply

  20. While you were asking a question , you could have seen “add a file as attachment” option .. Now do it !

  21. I had already faced similar type of problem in FEB-2010. Your client having only 30 nos of funds and my client had holding only 90 to 100 funds. I told to my client, Sir Diversification
    is good idea for win like stock market battle.But Over Diversification is very big Risk to your
    Investment portfolio. I suggest him to from this year you diversify your investment in two diversify funds and maintain your contingency ( 6 months Ballpark expenses).And also wait
    for higher valuation market for redemption your old funds and allocate in this two Diversify
    fund by tracking the valuation and restructuring in higher valuation and add in lower valuation.In a down the line longer horizon period you make a handsome corpus for your
    future requirement or Goals.

    But here all 90 to 100 funds advised by a Private bank’s Representative.

    Prabir Sharma
    M/s. Feel Bureau Of Financial Planning.
    ” Don’t You Work For Money Does Money Works For You”

    1. Prabir – Just a small change in the strategy.

      If one holds 90 funds and wants to invest in only 2 funds (my persoanl take is about 5 funds across Large, Mid and Small caps, Balanced and 1/2 Sectors) then they must simply do it NOW. You do not need valuations to come up because if you decide these 2 funds are the best they may most likely beat almost each of 88 funds over the next ‘ANY’ period. So sell those funds in part, move to Debt fund and STP them into the Core portfolio.Some can be sold and directly moved to the core portfolio

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