My MF portfolio and your feedback needed

POSTED BY cute flower ON April 19, 2013 5:19 am COMMENTS (26)

Invested below MF’s in 2012 in SIP

1) Sundaram Select Midcap – Regular Plan( Dividend) –  SIP investment From Feb 2012 – To Feb 2013 (recently changed from divdend to growth plan)

2) HDFC Top 200 Fund – (Dividend )- SIP investment From Feb 2012 – To Feb 2013 (recently changed from divdend to growth plan)

3) Fidelity Equity Fund Dividend Plan – Onetime investment  of Rs 2000 ( Feb 2012)

This year( 2013) I had invested in the following MF’s in SIP from Feb 2013.

1) UTI opportnities -G – 2000 INR
2) ICICI Prudential Focused Bluechip Equity Fund (G)  – 2000 INR
3) ICICI Pru Discovery Fund (G) – 3000 INR
4) HDFC Mid Cap Opportunities -G  3000 INR
5) HDFC Balanced Fund (G) 2000 INR
6) HDFC Top 200 Fund – Growth – 2000 INR
7) SBI Magnum Emerging Businesses Fund (G) – 2000 INR
8) Reliance Equity Opportunities Fund – Retail Plan (G) – 2000 INR

Total – 18,000 INR

Also, planning to invest INR 2000 per month in SIP on IDFC premier equity(G).

Please let me know if my MF is good or I need to change anything.

 

Thanks,

cuteflower

26 replies on this article “My MF portfolio and your feedback needed”

  1. Masterwoo says:

    Hi,

    Is there a way to track all direct MFs from single console.

    Thanks in advance for your help.

  2. Sumit says:

    Yes Ashal – comfort level takes priority.

  3. Dear Sumit, your own comfort level is the key.

    Thanks

    Ashal

  4. Sumit says:

    I feel 2 large/2 midcap funds always better to have in the portfolio than just 1 large/1 mid cap and more diversified. Diversified may not be in stocks but in AMCs. Every AMCs approach, style is different and hence the philosophy.
    Obviously unmanageable number of funds spoil the portfolio sometimes diversification among AMCs also add value to your portfolio.

  5. Dear Pattu, in response of your reply to dear Ashish. Points well noted as raised by you. Nothing wrong in your approach. One may add 1-2 more funds to make it comfortable but some one later joins & on the same basis adopted by you’ll, go for 7-8 funds by same logic of spreading risk. So how much is too much (in term of total no. of funds to be invested in) is at the end of the day ‘ll be a personal call. Yes I do agree with you for 3-4 funds & that’s the same thing I offered but started with only 2 funds as of now for consolidation purpose. 🙂

    Thanks

    Ashal

  6. Dear Cute Flower, as you are changing merely the funds & not investing fresh money, the redemption amount from non performers should be invested in one lump sum into the target fund.

    Thanks

    Ashal

  7. Dear Indrajit, if you are having only 2 or 3 funds, you can easily count the winners & laggards & make corrective actions in the favor of winners. Investing in too many funds ‘ll ultimately pull down your overall return. One more reason is – please check the underlying portfolio of the 4-6-8 funds, one is investing in & look for the overlapping stocks & then decide is it really a diversified portfolio?

    Thanks

    Ashal

  8. Indrajit Ghosh says:

    Dear Ashal,
    What’s the wrong in having 4 funds instead of 2?
    it has been seen that many well performed funds are underperforming now since years eg. Reliance Growth, DSPBR Equity. Once they gave above expected results. Same time same category funds are giving better returs like Quant Long term equity,Axis Equity etc…
    So if i have four instead of two, may be my risk factor will be low, suppose one of my two best fund underperform but other performed well,i will b balanced. May be i am wrong please put some more light.
    Eg, i have Hdfc top 200 & Icici Discovery
    Supose in three years they gave a return of 6% & 9%
    instead if i had Hdfc Top 200 & Franklin Bluechip, icici discovery & sbi EB, i would have got little better returns.
    please put your view.

    1. Ashish says:

      Dear Indrajit,

      Generally most of us assume, more the number of funds more diversified is our portfolio, whereas putting your money in funds which eventually invest in non-overlapping stocks is actual diversification. This, I feel, most of us overlook and not give any consideration while choosing a fund.

      We just look at past 1 yr, 3 yr performance and decides to invest in that fund. But if 5 funds investing in same stocks, their returns would be more or less same and hence we end up choosing overlapping funds most of the time.

      So if we choose just 2 funds, our control and diversification would be much better and average returns over a long time period (at least more than 3 years) would be better.

      That’s what I have realised and now following.

      Regards,

      Ashish

      1. Ashish,

        The argument about overlapping stocks is well taken. However my personal experience is that in actively manged funds with overlapping stocks can still have a difference in performance. I will personally like to spread myself a little more than just 2 funds I have found this keeps the downside risk lesser.

        At the end of the day if a person has a large no of funds his returns will resemble an index fund. Yes managing is a problem. However having more than 2 funds is not going to matter that much.

        Not saying one should have more funds. Just saying I would like to spread myself a little more than just. Even with overlapping portfolios funds can have very different risk and return profiles.

        1. Ashish says:

          Dear FFC,

          Yes you are right in saying that one need to manage the portfolio actively.

          I used to have 13-14 funds earlier, considering that was diversification. Now I have reduced it to 4 funds, 1 large cap equity, 1 mid cap equity, 1 balanced and 1 sector fund. This Sector fund is of course more riskier than other equities but then I am keeping an eye on it.

          Regards,

          Ashish

        2. Ramesh says:

          “keeps the downside risk lesser” = “keeps the upside risk lesser too!”.

          If having 4 funds means atleast 2 will remain good, that also means, atleast 2 will remain bad. 🙂

          The overall portfolio matters, not the individual stocks or funds.

  9. Dear Cute Flower, please stop all other SIPs. Leave the existing investments as it is. Invest full money into these 2 funds only. Later on after completion of 1Y, please divert the other funds’ amount to these 2 funds.

    Thanks

    Ashal

    1. cute flower says:

      Thank you Ashal

  10. Dear Cute Flower, Only 2 or max. 3 funds can do it for you. As your name is flower, I assume you are going to make a nice bokeh of MFs that’s why investing anything which looks pretty to you. But my dear friend, this bokeh is not going to help you. Cut down your no. of MFs.

    HDFC Top 200
    IPru Discovery

    Yes you read it right, only 2 funds can do it.

    thanks

    Ashal

    1. cute flower says:

      Dear Ashal,

      So you want me to stop all other SIP’s and increase the SIP amount for your recommended funds?

      HDFC Top 200
      IPru Discovery

      I have invested 5000 INR in these 2 funds now…and if I stop other MFs then I will have 13K balance? My question is do you want me to invest this 13k in above 2 funds?

      Btw, did not invest coz of boekh but of ill-advice from friends 🙂 🙂

  11. Dear Cuteflower, are you asking to add more MFs? On what basis you selected the original 3 funds & why opted for so many later on? Please elaborate.

    Thanks

    Ashal

    1. cute flower says:

      Hi Ashal,

      First one was ( 2012 MF’s) was invested based on my friend advice and 2013 MF’s invested on my own 🙂 … I am asking if I should maintain the same portfolio or reduce any. How about adding IDFC premier equity to my portfolio.

      Thanks
      Flower

  12. Yes. Stop investing in new MFs! Reduce the number of MFs
    These should do

    ICICI Prudential Focused Bluechip Equity Fund (G) – 2000 INR
    HDFC Top 200 Fund – Growth – 2000 INR

    ICICI Pru Discovery Fund (G) – 3000 INR
    SBI Magnum Emerging Businesses Fund (G) – 2000 INR

    HDFC Balanced Fund (G) 2000 INR

    Transfer your SIPs among AMCS and reduce the no of SIPs

    Exit investments 1 and 2 made in 2012 and reinvest in above funds

    Invest with a goal and purpose in mind. More mfs does not mean diversification

    1. cute flower says:

      Hi FFC,

      ARe you asking me to keep only these in my portfolio and exit all other invested in 2012 and 2013?

      CICI Prudential Focused Bluechip Equity Fund (G) – 2000 INR
      HDFC Top 200 Fund – Growth – 2000 INR

      ICICI Pru Discovery Fund (G) – 3000 INR
      SBI Magnum Emerging Businesses Fund (G) – 2000 INR

      HDFC Balanced Fund (G) 2000 INR

      What should I do with these investment? Exit now? These are invested in Feb 2013 and less than a year.

      1) UTI opportnities -G – 2000 INR
      4) HDFC Mid Cap Opportunities -G 3000 INR
      8) Reliance Equity Opportunities Fund – Retail Plan (G) – 2000 INR

      You asked me to exit from 1 & 2 of 2012 investment. What about 3rd on ie) hdfc top 200?

      sorry, I am new to MF investment and invested because of friends advice.
      Thanks,
      Flower

      1. Don’t make any further investments in these
        1) UTI opportnities -G – 2000 INR
        4) HDFC Mid Cap Opportunities -G 3000 INR
        8) Reliance Equity Opportunities Fund – Retail Plan (G) – 2000 INR

        Stop the SIPs and leave the remaining units there, exit after an year and reinvest in other funds

        Since you are anyway invested in HDFC Top 200 no need to change your 2012 investment,

        idea is you need to invest in large-cap mutual funds (1/2)
        ICICI Prudential Focused Bluechip Equity Fund (G) – 2000 INR
        HDFC Top 200 Fund – Growth – 2000 INR

        and (1/2) mid-cap and small-cap MFs.
        ICICI Pru Discovery Fund (G) – 3000 INR
        SBI Magnum Emerging Businesses Fund (G) – 2000 INR

        The investment in large-caps should be more 60-70% and rest in mid-caps. So restructure your investment amts accordingly

        No need for IDFC Premier equity as you already have

        ICICI Pru Discovery Fund (G) – 3000 INR
        SBI Magnum Emerging Businesses Fund (G) – 2000 INR

        The balanced fund will lend some stability while you understand how MFs work over long time.

        1. cute flower says:

          Hi FFC,

          Ok..I will stop the SIP’s for the below funds and do you want me to invest this 7K in large cap funds?

          1) UTI opportnities -G – 2000 INR
          4) HDFC Mid Cap Opportunities -G 3000 INR
          8) Reliance Equity Opportunities Fund – Retail Plan (G) – 2000 INR

    2. cute flower says:

      Hi FFC,

      one more Q, you said exit from 2012 investment. How should I re-invest this amount in large cap funds? As one time investment since I already have SIP for large cap

      1. Just buy some more units from whichever large cap fund you choose. Either from the AMC website or through your distributor.

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