Portfolio Review Pls!!

POSTED BY Vikas Vyas ON October 3, 2012 10:43 am COMMENTS (8)

Hello

I am planning to revamp my Portfolio and keep only the below 5 MFs.  I will withdraw from other Funds I have invested gradually and transfer in these 5 MFs.

If you can please advise on the Portfolio. Is it well diversified enough with no overlapping. Should I change or add anything?  Kindly note these are existing funds, I am not adding anything new.

I am looking for long term investment with aim of capital appreciation.

My New Proposed Portfolio.

1) DSP TOP 100  (Large Cap)

2) HDFC Top 200 (Large and Mid Cap)

3) HDFC Prudence (Balanced)

4) Reliance Regular Savings  (Multi Cap)

5) ICICI Pru Discovery (Small & Mid Cap)

The below Funds I am going to exit gradually and transfer them to the above funds.

a) IDFC Sterling Equity   b) Sundaram Tax Saver  c) DSP Equity d) HDFC MIP e) Reliance MIP

Note: Both MIPs above, I am planning to transfer to PPF and FDs for debt allocation

Please advise if I am on right track please. 

Thanks in advance

Vikas

8 replies on this article “Portfolio Review Pls!!”

  1. TheZionView says:

    Why 5 and Why not 2-3

    1.HDFC Top200
    2.Quantum Long term equity (or ur choice) Reliance Regular Savings
    3.IDFC Premier equity(or ur choice) ICICI Pru Discovery

    Keep allocation equal if your willing to take enough risk

    1. Vikas Vyas says:

      Hi

      Thanks for the suggestion.

      Because I am planning to invest long time, it would be a sizable corpus hopefully. Hence, I did not want to limit to 2 or 3 funds. This would mean large sum in one fund and if a fund manager changes or funds start to under perform, shifting money to another fund will take lot of time and bit messy. Hence I thought I should go for 5 funds.

      I would have loved to invest in Quantum Long Term especially due to its low expense ratio, but I already have money in the funds i mentioned. Now adding another fund will again unnecessarily over diversify.

      But I think I will leave out HDFC Top 200 on your advice and go with only 4 funds as below.

      HDFC Prudence

      DSP Top 100

      ICICI Pru Discovery

      Reliance Regular Saving

      Thanks for your advice. Hope I receive some more valuable comments from other experts.

      Regards

      Vikas

      1. Ramesh says:

        If one fund has a large amount, and if you want to shift anytime, then just bulk transfer it in a single day from this to that. No time lag and no mess, i guess.

        Out of those 4, just keep equal amounts (25% each). Simple.

        1. Vikas Vyas says:

          Hi

          Thanks for your advice.

          It does seem logical to transfer from one fund to another on any given day in one single slot.

          However, I had read many articles including in this forum that you should do it systematically and gradually and not all at once. I never understood the reason behind this, though.

          Thanks

          Vikas

          1. Ramesh says:

            Different logic / reasons by different people.

            I prefer a single shot poison, others prefer slow grinding poison. 😉

          2. TheZionView says:

            Vikas,
            I also suggest systematic investment but the case in which it should be used is different.

            In this case you already have the money in equity and moving it to another Equity Fund. Here you should do single shift instead of waiting.

            If the case is a lumpsum and its in your saving account then for general satisfaction you can deploy the money systematically. But even there it should never be over 3-6 months period

  2. Ramesh says:

    Fair enough.

    Though, I feel DSP top 100 and HDFC Top 200 are overlapping with each other. But not a big deal.

    Go ahead.

    1. Vikas Vyas says:

      Hi

      Thank you.

      How would you allocate in % for the above 5 Funds if you have at least 10 year investment perspective please?

      Hopefully I will receive some more comments.

      Vikas

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