Portfolio review required by experts

POSTED BY webgenius ON January 3, 2011 8:22 am COMMENTS (6)

Hello all,

I need your assistance in improving my portfolio.

Details about me:
Age: 25
Dependants: Father and Mother
Annual income: 800,000 PA
Monthly take home: 55,000

This is my currnet portfolio:

MFs: (Invested -> current value)
Can Robeco Equity TaxSaver (20k -> 32.9k)
DSP-BR TaxSaver Fund (20k -> 27.3k)
HDFC TaxSaver (20k -> 24.4k)
Reliance MIP (15k -> 15.9k)
SBI Magnum Tax Gain (10k -> 19.6k)
Sundaram TaxSaver (10k -> 18.2k)

Public sector banks: 207,000
company FDs: 50k

LIC Jeevan Anand -> Coverage for 300,000. Yearly premium of 22.5k.

Savings in SB account: 260,000
Another 100k to 120k liquid amount expected in another 15 days.

The above portfolio does not include the PF amount.

To summarize, these are my current holdings:
MFs: 138k
FDs: 267k
Insurance current value: 67k
Savings in SB: 260k (+100 to 120k in next 15 days)


Is my portfolio alright? Is there anything that I can do to maximize my returns further?

The next step for me is to keep 150k to 200k aside for emergency, and invest the remaining amount of 150 to 200k. All suggestions are welcome.

6 replies on this article “Portfolio review required by experts”

  1. Sonia Bhatia says:

    But as per the review in Jagoinvestor i came to know that investing in term plan from MNC Banks like ICICI BNK Iprotect and Iterm by Religare . Premium was too low lets say for 50 Lacs apprx 7500 per year as compare to LIC its is around 25000 But MNC Banks % of paying back is too low as compare to LIC.

    Moreover in MNC bnks Life covers to the coming 30 Years Upto the age of 60 Years

    But in LIC one can go up to 35 years of age. Upto the age of 70 Years

    LIC have 90-92% of Paying back on the other hand these Private banks have 30-35 % only.

  2. shashank kashettiwar says:


    Almost all the advice we receive on financial planning focusses on the ‘financial capital’. You should learn to develop a proper perspective for the ‘human capital’ as well. I would say this ‘human capital’ is much more important than the ‘financial capital’.

    You are young, not many yrs have elapsed from the day you might have started working, so your personal data regarding the performance of the human capital would be limited but you can gather some details from others, some seniors , to understand what I’m writing about the human capital. Data regarding the financial capital, various investments avenues , products cost of living-inflation is very much available to everyone.

    Regarding human capital and issues connected with:

    Try to calculate what has been CAGR growth in your income from the age you started earning till today. Think where your career is leading and what is going to be the income 3,5,10 yrs downline and also when you would like to retire and what income and designation you would reach by that time. Our income and the consequent saving is the chief contributor for the creation of the physical wealth. the rate of growth of this financial wealth is not much in our control as such. Whatever are the long term rates of returns on these various asset classes ;where we would park our income, would be achieved by these investment avenues generally. Some mistakes here or there hardly make any great impact in the long term. And anyways very very few can aspire to be Rakesh Jhunjhunwalas or Warren Buffets of this world.( they have been able to do this because they have focussed on sharpening their ‘ability’ to manage money-again the ‘human capital’ at the forefront)
    Much higher rates of growth in income can be achieved and the resultant wealth creation will also be very strong with ‘human capital’ focussed approach. If you can understand this clearly then only true significance of insurance planning will be realised. Because through insurance you are creating a mechanism through which we try and protect the income earning/wealth creating ability of the ‘human asset’ or the ‘human capital’. So do not develop a narrow view of looking and insurance covers. A cover of 50 lakhs at your age and income is way below your earning potential. In my opinion it should be in the range of 15-20 times your income. And mind you even budgeting for this kind of cover is not going to affect your any financial goals in life negatively at all! (These covers should also be a sensible combination of savings and term type plans if possible)

    If what I have written so far makes sense to you , I can go on describing a sensible methodology of attempting one’s financial planning and how it is to be srtuctured and understood.


    1. webgenius says:

      “If what I have written so far makes sense to you , I can go on describing a sensible methodology of attempting one’s financial planning and how it is to be srtuctured and understood.”

      @Srikanth: I would really appreciate that

  3. webgenius says:

    Hello all,

    Kindly answer these questions that cropped up in my mind after seeing Srikanth’s reply:

    “Your insurance cover is inadequate. You need to increase it to atleast 50 lakhs via a term policy.” -> Is it a good strategy to have both money-back policy and term policy?

    “You need to start investing via SIPs” -> I do not do SIP because I usually invest in MFs when the market is not at its peak. Most of my MF investments were done that way, and have got good returns. But on the downside, when the market is at its peak, the liquid cash would be earning very less in FDs or liquid funds.
    If I do opt for SIP, which is a good ploy? Invest in ELSS or equity-hybrid funds?

    “Your overall portfolio needs to get more aggressive” -> I know I need to get more exposure into equity. But the market is at its peak now. Am not sure how long I should wait before playing hard on equity.

    1. Ramesh says:

      Just a little point regarding “markets are at peak”.

      markets were unpredictable yesterdat, are unpredictable today and will remain so in future. So, you are wrong in assuming that the markets are “at peak”. Peaking is only a retrospective diagnosis.

      If your equity portfolio allocation is less than what it should be (whether static or a dynamic asset allocation strategy) then you should buy and vice versa.

      the problem occurs when you buy at higher ends (after seeing the market run-up) and then do not buy or sell in fear when they are in correction mode. Keep a diversified portfolio and do not “time the market”.


  4. I will make some macro observations about your financial picture:

    1. You are young, you make good money, and you are conscious about financial planning. Mazel Tov!

    2. Your insurance cover is inadequate. You need to increase it to atleast 50 lakhs via a term policy. Please read Manish’s recent blog entry on term policies and go with one.

    3. You need to start investing via SIPs – you have not indicated any ongoing SIPs in your portfolio.

    4. Your overall portfolio needs to get more aggressive – way too conservative given your age right now.

    5. For the money coming in, park it in a liquid fund, and do systematic transfer plan to a balanced portfolio.

    Good luck,


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