What your portfolio needs is a solid actively managed large-cap-oriented fund. You can consider HDFC Top 200 Gr or DSP Blackrock Top 100 fund for this purpose.
I am 34 years old, married and have a two-year-old son. My wife does not earn. I work in merchant navy and my yearly income is Rs.10 lakh. My mutual fund portfolio includes 21 funds from different categories and total investment adds up to Rs.10 lakh. I have one systematic investment plan (SIP) in ICICI Prudential Dynamic fund of Rs.5,000 per month started in July 2009. I also have a systematic transfer plan of Rs.5,000 per month (from HDFC CM Treasury Advantage Plan Retail to HDFC Index Fund-Sensex Plus) started in February 2010. Please advise me about my portfolio. Also suggest another fund for SIP of Rs.5,000 per month.
-Vinayak Warang
Twenty-one schemes are a lot of schemes to have in a portfolio. They make the job of tracking and keeping up with changes very difficult. Please consider reducing the number of schemes in your portfolio to less than 10. You can use the Mint 50 as a guide to figure out which schemes to keep and which to redeem. Regarding your SIP portfolio, you have an investment in a multi-cap fund (ICICI Pru Dynamic) that also invests in debt instruments, and an investment in a passively managed index fund. What your portfolio needs is a solid actively managed large-cap-oriented fund. You can consider HDFC Top 200 Gr or DSP Blackrock Top 100 fund for this purpose.
I am 29 years old with a net salary of Rs.40,000 per month. I plan to go for higher studies after two years. What mutual fund investments, and which funds, would you suggest for me? I can spare Rs.7,000 per month and I need maximum returns as you know studying abroad is quite expensive.
-Santosh P.
You need the money for your expenses in two years. That is too short a time frame to achieve a reasonably reliable return from the equity market. Even if you invest 100% in aggressive equity funds, there can be no reasonable guarantee of even protecting the invested capital. So, how you want to invest your regular savings depends on how much risk you can take. You are planning to invest Rs.1.68 lakh. Consider for a second how you would feel when you check your portfolio after two years, it is worth only Rs.1.50 lakh or lesser. If that possibility scares you or makes you uncomfortable, you should stay with relatively safe instruments such as monthly income plan or short-term income funds (Reliance MIP or Templeton India ST Income fund). On the other hand, if you think you can stomach the risk, you can go for an aggressive portfolio with schemes such as Templeton India Growth and DSP Blackrock Small and Midcap funds.
source: www.indiainfoline.com
What your portfolio needs is a solid actively managed large-cap-oriented fund. You can consider HDFC Top 200 Gr or DSP Blackrock Top 100 fund for this purpose.
I am 34 years old, married and have a two-year-old son. My wife does not earn. I work in merchant navy and my yearly income is Rs.10 lakh. My mutual fund portfolio includes 21 funds from different categories and total investment adds up to Rs.10 lakh. I have one systematic investment plan (SIP) in ICICI Prudential Dynamic fund of Rs.5,000 per month started in July 2009. I also have a systematic transfer plan of Rs.5,000 per month (from HDFC CM Treasury Advantage Plan Retail to HDFC Index Fund-Sensex Plus) started in February 2010. Please advise me about my portfolio. Also suggest another fund for SIP of Rs.5,000 per month.
-Vinayak Warang
Twenty-one schemes are a lot of schemes to have in a portfolio. They make the job of tracking and keeping up with changes very difficult. Please consider reducing the number of schemes in your portfolio to less than 10. You can use the Mint 50 as a guide to figure out which schemes to keep and which to redeem. Regarding your SIP portfolio, you have an investment in a multi-cap fund (ICICI Pru Dynamic) that also invests in debt instruments, and an investment in a passively managed index fund. What your portfolio needs is a solid actively managed large-cap-oriented fund. You can consider HDFC Top 200 Gr or DSP Blackrock Top 100 fund for this purpose.
I am 29 years old with a net salary of Rs.40,000 per month. I plan to go for higher studies after two years. What mutual fund investments, and which funds, would you suggest for me? I can spare Rs.7,000 per month and I need maximum returns as you know studying abroad is quite expensive.
-Santosh P.
You need the money for your expenses in two years. That is too short a time frame to achieve a reasonably reliable return from the equity market. Even if you invest 100% in aggressive equity funds, there can be no reasonable guarantee of even protecting the invested capital. So, how you want to invest your regular savings depends on how much risk you can take. You are planning to invest Rs.1.68 lakh. Consider for a second how you would feel when you check your portfolio after two years, it is worth only Rs.1.50 lakh or lesser. If that possibility scares you or makes you uncomfortable, you should stay with relatively safe instruments such as monthly income plan or short-term income funds (Reliance MIP or Templeton India ST Income fund). On the other hand, if you think you can stomach the risk, you can go for an aggressive portfolio with schemes such as Templeton India Growth and DSP Blackrock Small and Midcap funds.
source: www.indiainfoline.com
