MF Portfolio

POSTED BY Pintu Chattaraj ON January 13, 2013 6:48 pm COMMENTS (5)

I have just started investing 15000/month in the following funds :

Large Cap

1. ICICI Pru Focused Bluechip Eqty (G) = 4000/-

2. UTI Opportunities Fund (G) = 4000/-

 

Mid/Small Cap

3. SBI Magnum Emerging Busi (G) = 3000/-

4. Birla Sun Life MNC Fund (G) = 2000/-

 

Balanced

HDFC Balanced Fund (G) = 1000/-

Reliance RSF – Balanced (G) = 1000/-

 

Is this portfolio optimal? My age is 30yrs.

5 replies on this article “MF Portfolio”

  1. Dear Pintu, please check the portfolio of the 2 funds in each category & then tell me the diversification you are getting.

    Thanks

    Ashal

  2. Pintu Chattaraj says:

    @ FFC: Thanks for your input! Since i am 30yrs unmarried and still have years before i retire, i think the ratio 8:5:2 in Large, Mid/Small and Balanced is not too much of a risk. And as i approach the age of retirement i will gradually decrease the equity component and shift towards debt. Intermediate portfolio churning will ofcourse be there (based on the performance of the funds).

    @ Ashal Jauhari: I think 6 funds in a portfolio is not that bad either. 2 funds from each category is better than 1 fund if you ask me. But again this will be the maximum number of funds i will have in my portfolio to avoid over-diversification.

    1. Pintu Great! good luck. I too agree with the 2 funds in each category strategy although 3 funds could do the job. Letting two fund managers handle each market cap spreads the risk a bit

  3. Dear Pintu, may i know the reason of opting 6 funds?

    In my personal opinion, it should be only 3 funds – one fund from each category. Which one to chose, only you can decide.

    Thanks

    Ashal

  4. the balance wrt large cap; mid cap and balanced fund seem right.

    You need to check if you are investing according to your risk profile and whether you have enough debt component in line with this for your goal. Review each year and rebalance to ensure the same equity: debt ratio as per your risk profile

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