Long Term_MF_SIP

POSTED BY Basil Varghese ON January 29, 2013 2:45 pm COMMENTS (7)

Hi Manish and Nandish,

I am Basil Varghese, an NRI working in Saudi Arabia and a Jago Investor reader. 

I want to SIP invest Rs 50,000/month for a period of 10 years on NRI base to save from the tax on maturity.

(1)Large CAP: ICICI Prudential Focused Blue Chip Equity Regular-Growth

(2)Large & Mid Cap: Canara Robeco Equity Diversified Regular-Growth

(3)Multi Cap: DSP Black Rock Equity-Growth

(4)Hybrid-Equity Oriental Balance Fund: HDFC Balanced-Growth

(5)Mid& Small Cap: IDFC Premier Equity Plan A –Growth

(6)Equity-Bank: Reliance Bank &

(7)Gold: Reliance Gold Savings

 

I have not included the glittering Large & Mid Cap schemes HDFC EQUITY, HDFC TOP200, L&T EQUITY, UTI EQUITY since already a Large & Mid Cap is included in my selected portfolio & to avoid over diversification. Please advice on the SELECTION & % ALLOCATION with expertise. Also about including Bank Equity & Gold Savings.

Once again thanks Manish and Nandish for coming up with Jagoinvestor and for your financial guidance.

Basil Varghese

7 replies on this article “Long Term_MF_SIP”

  1. Dear Basil, in my personal opinion, only 2 funds are more than enough. Franklin India Bluechip & HDFC Eq. Easy to track, easy to decide when to move out & over all performance of your portfolio ‘ll be clean & crisp.

    Thanks

    Ashal

  2. Raj says:

    You don’t have to invest as NRI if you are planning for long term, there are no long term capital gain tax for Equity investment in India if you are investing for more than 1 year. At the same time NRI has short term capital gain tax 15% deducted through TDS if you switch out / redeem investment within 1 year. Resident individuals also need to pay STCG but no TDS applicable.

  3. Basil Varghese says:

    Dear Ashal,

    Thanks a lot for your comment.

    I am fine tuning my portfolio. Please find below portfolio for your expertise opinion. Allocation 20% each. •

    Replaced IDFC Premier Equity Plan A with DSP Black Rock Small & Mid Cap for more exposure to mid & small.

    Also have taken care of the new Fund Managers information from Ramesh & avoided gold fund on long term bet.

    1. Large Cap : Fraklin India Bluechip-G
    2. Large & Mid Cap : HDFC Equity-G
    3. Multi Cap : DSPBR Equity-G
    4. Hybrid : HDFC Balanced-G
    5. Mid & Small Cap : DSPBR Small & Mid Cap-G

    Portfolio Style Break Up:
    1. Giant : 29.04%
    2. Large : 17.73%
    3. Mid : 40.98%
    4. Small : 12.10%
    5. Not Classified : 0.15%

    Portfolio Asset Allocation:
    1. Equity : 91.63%
    2. Debt : 6.57%
    3. Others: 1.81%

    Thanks

    Basil

  4. Dear Basil, have you checked the underlying portfolio of all the 6 funds (barring gold fund) for how much diversification you are getting?

    In my personal opinion, only 2 or 3 funds are enough for you. Which one to chose & which one to drop from your existing selection, you should decide on your own after checking the portfolio.

    Thanks

    Ashal

  5. Basil Varghese says:

    Thanks Mr. Ramesh for your useful information. Can you suggest better choice to replace them. Any comment or advice on Sector fund, Gold fund & % allocation.

    1. Ramesh says:

      My advice will be only specific for equity investments-
      Just invest whatever you got for equity into DSP Equity – Direct Plan. Done. No need for any other fund. No need to mess with sector allocation, cap allocation, etc. For long term SIPs, you will be not be disappointed.

      Regarding gold, YMMV. I do not like gold at all for long term investments.

  6. Ramesh says:

    Your funds 1, 2 have lost their fund managers (who are supposed to be responsible for their performances in the last few years). So, it will be better choice to replace them with similar types of funds whose managers have continued over longer periods of time.

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