My Dream Portfolio

POSTED BY Rajendran ON December 16, 2010 2:37 am COMMENTS (4)

 I have been working towards building my dream MF portfolio and I have shortlisted the following funds after going thro’ various site and psoting questions in various forums..

1)DSPBR Top 100 Eqt Reg  (Large Cap)
2)Reliance Regular Savings Equity (Multi cap)
3)HDFC Top 200  (Large & Mid Cap)
4)IDFC Premier Equity Plan A (Mid & Small Cap)
5)HDFC Mid-Cap Opportunities (Mid & Small Cap)

Logic behind choosing these funds are:

1)  All of them have been rated either 4 or 5 ratings. They performed very well over the years.
2) Other than HDFC Mid Cap all other funds are there for more than 5 years.
3) I choose 2 small & mid cap as I deem them, as more risky and I need more diversification.
3) Reason behind choosing 1 large, 1 large & Mid cap and 1 multi cap is to ensure that I have at least 50% exposure to Giant & Large cap stocks.

If I provide 20% weight age to all the funds then portfolio would be

Giant                30.12
Large Cap          20.94
Mid Cap             28.84
Small Cap          10.96
Not Classified       9.14

What is your take on my to be MF portfolio? Do you think I have enough ammunition in my portfolio to give good and stable returns. Any suggestion or thoughts would be of great help. Thanks in Advance for your time and effort.

4 replies on this article “My Dream Portfolio”

  1. Ramesh says:

    @Rajendran

    Actually, you can keep either of 4 or 5, though I personally prefer 4.
    Also, you can keep 1 or 3. Stratifying large-cap and large-mid cap does not make much of a difference!
    In my opinion, HDFC Equity has a better flexibility than HDFC top 200. So 1 large cap, 2 multicap and 1 mid-small cap will be my recommendation for an all-weather kind of portfolio.

    Since you have selected and finalised these funds (4/5 doesnt matter actually, :)). Over 6 months/1 year periods, apart from the SIPs. Try to put lumpsum in the funds which have UNDERPERFORMED. So, if the large cap space has underperformed, put money in that space and vice versa.

    Personally, I will advise you to have some exposure to International equity also (eg Templeton India Equity Income).

    Ramesh

  2. Rajendran says:

    @Moneysavingshelp. Thanks.
    @Ramesh.

    As of now, I would not touch any of these funds for an year. After an year I will review the fund every 6 months and will take appropriate changes accordingly.

    Can you please let me know which fund do you think I should remove from my Portfolio.
    The only reason why I had 2 funds from Small & Mid cap is that, Small & mid cap have large number of stocks are most volatile and risky so diversification over there would provide stability to the portfolio.

  3. Ramesh says:

    My thoughts.

    1. You have taken lot of effort to get to a good portfolio. The funds you have selected are well and good.
    2. There is no dream/ideal portfolio, according to me. It is well and good that these funds have 4/5 star ratings presently, but you need to think what if these funds lose their ratings, and some other funds come up with better ratings. What will you do with these funds? That you need to decide now.
    3. In my opinion, you have 1 extra fund. Overdiversification is also not good!

    🙂

    Ramesh

  4. Your portfolio is good. I hope you’re starting with SIP at this stage of market. Once market takes dip, you can invest some lump-sum in same funds.

    Hope it will help you.
    InvestmentKit.com

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