Please review my Mutual Fund portfolio and suggest accordingly

POSTED BY ABHIJEET ON September 1, 2011 12:35 pm COMMENTS (7)

Hi Team,
Please review my portfolio and suggest if i am on the right track?
Age – 30 years.
Investment Period – 15-25 years.
Goal – 1 – After 15 years 30 Lakh.
Goal – 2 – After 25 years 1.00 Cr. (Including above 30 Lakh)
Investment / month – Rs. 5,000/-
Portfolio present value : Rs. 47,534/-
Portfolio Invested Value: Rs. 50,000/-
Portfolio Details :-



HDFC Prudence Fund (G)
Quantum Gold Savings Fund
Fidelity Global Real Assets Fund (G)
Equity Diversified
HDFC Equity Fund (G)
HDFC Mid-Cap Opportunities Fund (G)
Equity – Banking
UTI Banking Sector Fund (G)
Investments in Mutual Funds

7 replies on this article “Please review my Mutual Fund portfolio and suggest accordingly”

  1. ABHIJEET says:

    Dear Ramesh,

    Thank you again. But i want to tell you that i took prudence because of it’s proven capability of downside protection that is to protect my portfolio when the market is falling, because of my sectorial ex-poser.

    But on your advice i checked quantum long term equity and find 16 stocks that have no overlapping and cheaper in terms of expense ratio and not impressed with fidelity international.

    So i have decided to go with QLTE fund.

    But please tell me that should i book some profits from some of my funds when it touch a 30% to 50% profit, if that then how to book profit that is the amount will be profit portion or both principal+profit in part, to re-balance my portfolio.

    I am asking this question because of the present market scenario , that is if in coming 3-5 years markets play in a range bound condition that is say sensex 14000-25000 and 25000 to 18000 then year after year i gain 50% and lose 40%.

    So what u think the best strategy to gain maximum?

    1. Ramesh says:

      @ Abhijeet
      In the end, only you should take the decisions. I can only suggest!
      I suggested fidelity international because of its style, and the good management team. The only other option in this variety is Templeton India Equity Income (but you dont have this fund house).

      Regarding booking profit, its a loser’s game to book partial / complete profits. You can never really have a mult-bagger return that way. In last 10 years, some of the funds have given 10x returns. Do you think your strategy will be able to get better returns than that? Remember you cannot really predict the future. You should really focus on the goals (long term) and the asset allocation (equity percentage and style). Not whether to book profits or prevent losses (stop-losses), etc.
      Read writings of Peter Lynch, Phil and Ken Fisher, Charles’ Ellis,etc.

  2. Ramesh says:


    You will need to define aggression in your terms. There is no “best” way. You will need a combination of flexibility and firmness (in your beliefs).

    I always find the flexibility of Multi-cap funds better. In your fund houses,
    1. HDFC Equity is already there.
    2. Quantum long term equity is another very good fund.

    3. You can take a look at Fidelity International opportunities fund (india + abroad), to give you an international equity exposure (apart from real assets fund). Check out the fidelity india’s site for facts regarding this fund. this will have a quite separate allocation from your other India based funds.

    4. HDFC Mid-cap opportunities fund is a reasonable mid-small cap fund without significant overlapping with HDFC equity.

    So, check them out.
    In my view, HDFC Prudence also doesnt quite fit into your aims, despite it being a good aggressive hybrid fund.

  3. ABHIJEET says:

    Dear Ramesh,

    Thanks for your valuable comments. Now please tell me if i want to chose a aggressive fund from the above four fund houses to avoid sectorial ex-poser and overlapping problem, then what will be the best and what allocation?

  4. ABHIJEET says:

    From Value Research fund rating and for some global ex poser as well as a aggressive portfolio with diversification i chose those funds.

    But i want suggestion if there any rectification needed to archive my goal.

    also i track my portfolio performance almost twice a week and with monthly sip i also top-up
    my fund based on fund wise total profit or loss.

    1. Ramesh says:

      Ok. My thoughts:
      1. You have chosen good funds. But I feel you are too much into HDFC funds, which dont really give you diversification. HDFC Prudence has quite an overlap with HDFC equity and mid-cap opportunities. You may need to look at that.
      2. A sectoral banking fund is not really required in your portfolio. Why? check the sectoral allocation of hdfc equity and prudence. they are most allocated to the financial sector. So your overall portfolio gets even more skewed towards the banking sector. Sectoral funds are good if you can look ahead and say which sector is going to perform next, not by looking behind and seeing which has done well.
      3. Fidelity real assets fund is a good fund and there is no real replacement of that. there is one from ING (ING real estate) but that is completely related to real estate. While fidelity fund is more diversified. Keep it.
      4. Regarding gold fund. Dont let it increase beyond 10% of your portfolio. Or dont let fidelity real asset and gold (alternatives, you can say) be more than 20% of total portfolio.

      5k per month @ 10% increase per annum and 12% CAGR growth will easily give you your required goals.

  5. Ramesh says:

    What is the rationale (reason) behind selecting these funds?

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