Is it right composition of Core & Satelite Mutual Fund Portfolio?

POSTED BY e viswanath ON December 18, 2011 11:57 pm COMMENTS (9)

Hi ,
I picked below mutual funds for the next 10 years of investment. Any suggestions for below portfolio.

1. Large Cap Fund: Frankline India Bluechip Fund – Growth
2. Large & Midcap Fund: UTI Opportunities Fund (or) UTI Dividend yield -Growth
3. Midcap & Small Cap Fund: IDFC Premier Equity Fund -Growth
4. MultiCap Fund: DSPBR Equity Fund -Growth
5. Satelite Fund: UTI Banking Fund (or) UTI Pharma & HealthCare Fund.
or Reliance Banking

Will you plz suggest ideal proportion to invest in above Mutual Funds?

Thanks & Regards
vishy

9 replies on this article “Is it right composition of Core & Satelite Mutual Fund Portfolio?”

  1. e viswanath says:

    Thanks to all for your valuble suggestions.

  2. Narayan says:

    Ten years is a long time and although you have made some good fund selection; you should stick to an asset allocation (mix of equity and fixed income) based on the risk that you can take. The Core and Satellite allocation to some extent helps you achieve this with the core funds being less volatile and steady compared to the Satellite funds that are risky but have the potential for high returns to help your investment grow.
    I would also suggest that you review the performance of these funds once a year and observe how they have fared. This will help you understand the way your investments have fared. It also gives you the opportunity to make changes to the selected funds in case of non performance and to balance your portfolio in line with your preferred asset allocation.

  3. Dear Viswanath, it’s your journey & you have to chose the mode of travel as well as the time you want to remain in travel. %age allocation among the discussed funds ‘ll be a personal call based upon your own comfort level.

    thanks

    Ashal

  4. TheZionView says:

    viswanath ,

    I feel 5 funds is still a lot :). Still i will try to suggest to what i feel the best would be,assuming a 10K per month.

    Core-60%
    Large cap – Frnaklin India Bluechip- Rs 4000
    Large & Mid cap – HDFC Top 200 – Rs2000

    Satellite-40%
    Multicap – Quantum Long Term Equity- Rs 2000
    Midcap – Birla Sunlife Dividend Yield – Rs 2000

    You should check with what % your comfortable with core & Satellite

    I don’t suggest sectoral funds..i think the best way to do in sectoral fund is through Lump sum / which also will mean Timing the market,,which is a statement i don’t believe in.

  5. Dear E Viswanath, The Franklin fund name is Franklin India Bluechip. Focussed Bluechip is an Icici Prudeintial MF’s fund. Please clarify which one you want to go?

    For your selection, here is my list –

    Large cap – Frnaklin India Bluechip
    Large & Mid cap – HDFC Top 200
    Multicap – DSP Eq.
    Midcap – IDFC Prem. Eq.
    Satellite Fund – Rel. Banking

    Thanks

    Ashal

    1. e viswanath says:

      Hi Ashal,

      Typo mistake is corrected. Thanks for ur opinion.

    2. e viswanath says:

      Will you plz suggest ideal proportion for above Mutual Funds?

      Cheers
      vishy

  6. kramasundar says:

    in what ratio do you plan to invest in the funds?

  7. Ramsundar Kandsamy says:

    instead of uti banking pick Reliance banking fund.
    As large & midcap fund pick HDFC Top 200.

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