Need advice for my MF SIP portfolio

POSTED BY Manish ON January 22, 2013 9:40 am COMMENTS (7)

Hi,

I planning around 13K per month SIP in mutual funds for long term (> 5 years) wealth generation purpose. So far I have selected

 

  5K monthly SIP in ICICI focused bluechip equity growth

  4K monthly SIP in IDFC premeir equity plan A growth

For the third SIP, I need guidance from you folks. I already have other debt investments. Looking for primarily equity play. I am confused on 2 aspects:

1. Should I consider multi cap or balanced fund?

2. Please share few funds in those category you would recoomend.

3. Should I consider a dividend plan of the fund?

To be honest i still dont have clear financial goals defined.

 

7 replies on this article “Need advice for my MF SIP portfolio”

  1. Raj says:

    Also read Morningstar’s in-depth analysis here – http://morningstar.in/featured-reports.aspx

    Key points are:

    ICICI Focused Bluechip – In Jan 2012, manager Prashant Kothari, who managed this fund since its inception in May 2008, exited the fund company.

    IDFC’s stewardship has been subpar, as it has not always acted in investors’ best interests.

    Depending on your risk taking abilities you can try these alternatives as well:-

    1. Franklin India Prima Plus – Multi cap – Rated Gold by Morningstar.
    2. HDFC Prudence – A balanced fund managed by Prashant Jain has returns similar to HDFC Top 200 & Equity.
    3. Franklin India Bluechip as an alternative to ICICI Focused Bluechip.
    4. Quantum Long Term Equity.

    1. Ramesh says:

      Perfect answer.

  2. Dear Manish, in case of direct option over fundsindia, you can save around 0.5% of ezxpense ratio towards trail commission. it may not look big initially but after 10-15-20Y, this ‘ll create a large difference between fundsindia & direct investing.

    The 3rd fund from my side ‘ll be Quantum long Term Eq. fund.

    thanks

    Ashal

    1. Agree Ashal

      All I am saying is that if someone expertise (it can be an offline agent or your financial planner) is adding any advice which helps you in taking decisions which gives you another 1-2% return advantage , then its better to stay with the planner rather than direct plan . direct plan is for those who can independently take their decisions .

      Manish

  3. As your goal is mainly wealth creation . It does not make sense to opt for dividend option at all .. Also choose DIRECT plan of funds , so that you pay less charges .

    Now coming to funds selection , as said by FFC , you can choose Quantum Long term equity fund , its a good one, or even long term good one like HDFC Equity or HDFC are good. Another one which I generally suggest is DSPBR top 100 .

    Manish

    1. Manish says:

      Thx. I recently shifted from ICICIDirect to FundsIndia platform for my SIPs. How much expense difference would be there between fundsindia Vs direct plan?

      On the fund selection: I already have large cap and mid cap covered. So should I think of a multi cap rather than another large+mid cap? Does it really matter?

      I look at VRO rating, returns (1 ,3 , 5 , inception) and expense ratio for selection.

  4. The two sips you have are decent ones. You could just increase the investment there.
    Or you could go for a multi-cap like Quantum long term equity

    Don’t choose any dividend plan. That would affect the compounding and decrease the corpus.

    Better to list down your goals. That would give you much better focus

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