Mutual Funds Diversification

POSTED BY Anoop S ON January 29, 2013 10:13 pm COMMENTS (6)

6 replies on this article “Mutual Funds Diversification”

  1. Dear Anoop, thanks for providing your views. Please tone down your return expectations from 20% to around 10-12% max. If you get anything better than this, it ‘lll be your bonus. Here I’m talking for future 20-30 years & not the past performance achieved by these funds.

    When I ask you to check the portfolio of these funds, I asked you to check where the money is invested? I mean in which stocks the money is invested. You ‘ll come to know here for a common holdings for some stocks in your funds. So in that sense, it’s not a real diversification.

    Please check it once again.

    Everybody is new & all of us are learning collectively. Please do not think that you are asking any silly question. This forum belongs to all of you & these questions are the things, the forum is meant for.

    Thanks

    Ashal

  2. Anoop S says:

    Hi Raj,

    Thanks for the link… it was very helpful 🙂
    I wanted to invest for long term (15 – 20) years for wealth creation.. about my risk profile I’m 33year old, with no debts and married with stable job, so I think I can take a few risks.

    Hi Ashal,

    I’m new to mutual funds/stock investing and I had tried to select funds based on past performance and could see hdfc funds have given consistent stable returns, where as sbi emerging business, icici pru discovery and reliance banking have given great returns but I guess there is risk associated since they are investing in mid/small cap or investing in particular sector.

    I had a look at the underlying portfolio and could see I would be investing more than 90 percent into equities and with sbi emerging business and icici pru discovery I would be increasing my risk by investing more in mid and small caps. Please advise if I’m better to go with SBI emerging alone?

    I’m looking to gain 18 – 20 percent PA with the funds selected. Please advise if my fund selection is good or should I make any changes?

    Thanks,

  3. Dear Anoop, why are you investing in 5 funds? Can you provide any logic? If diversification is your logic, please do check the portfolio of your each fund & come here again with your findings. SBI Emerging business & IPru Discovery, don’t you feel you are exposing yourself too much risk?

    Thanks

    Ashal

  4. Raj says:

    Morningstar’s X-ray should help you look for overlaps: http://lt.morningstar.com/dk7pkae7kl/xray/editholdings.aspx

    Unless you specify your risk appetite, goals and investment duration there is nothing much to do on fund section.

  5. Anoop S says:

    Hi,

    I want to start SIP in the below schemes for long term

    SBI Emerging business – 1000
    HDFC Top 200 – 1000
    HDFC Prudence – 1000
    Reliance Banking – 1000
    ICICI Pru Discovery – 1000

    Can you please advise if the funds selected are good.
    Please advise how do I know if the funds selected are not overllapping, are there any tools available which I can use?

    Thanks,

  6. Dear Anoop, what/s the query?

    Thanks

    Ashal

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