Monday, January 12, 2009

DO I NEED TO BALANCE MY PORTFOLIO?

Hi Srikanth,
Thank you very much for your advices on this goodfundadvisor blog.
Really they are very helpful. Please give me some suggestions to improve my
port folio. I feel it is not properly balanced currently. It has too many funds.
I am 30. can invest 25000 per month in MFs. I can take High risk as I dont have any
serious financial commitments. I am planning to invest for a 20 years.
My investment goals is long term and for retirement.

current investments
DSP-ML Top 100 Equity - RP (G) SIP Rs 2000 per month
DWS investment opportunity (G) SIP Rs 2000 per month
Fidelity equity (G) SIP Rs 2000 per month
Kotak Opportunities Fund (G) 25th August SIP with Rs 3000 per month
Reliance Growth Fund - RP (G) SIP Rs 3000 per month with SIP insurance
Sundaram Select Focus - RP (G) 25th August SIP with Rs 2000 per month
SBI Magnum Multiplier Plus (G) Rs 20000 Lumpsum in july
HDFC Growth Fund (G) SIP Rs 2000 per month
Kotak Opportunities Fund (G) SIP Rs 3000 per month with starkid insurance
Reliance RSF - Equity SIP Rs 2000 per month
SBI Magnum Contra Fund (G) SIP Rs 2000 per month
Tata Infrastructure Fund (G) SIP Rs 2000 per month
ICICI prudential Infrastructure Rs 5000 Lumpsum

Thanks,
Anjan


SRIKANTH SHANKAR MATRUBAI replied
Dear Anjan,
Thank you for your kind words. I hope you have taken sufficient Term Insurance to secure your future. If not, do that on priority basis.
You have a very good selection of funds. You do not need to tinker too much with them. Your 2 lumpsum investments in SBI magnum Multiplier Plus and ICICI Prudential Infrastructure can continued to be held for now.
You have 2 sips in Kotak Opportunities Fund of 3000 each. While you continue with the Starkid Insurance sip, you discontinue with the other one and consider investing in
2000 Sip in Birla Sunlife International Equity Fund - Plan A (An international fund, and added bonus of Free Life Insurance of 2 lakhs)
1000 Sip in JM Contra Fund (Although you have SBI Contra, note that SBI Contra is more of a Diversified Fund rather than a Contra Fund)
Also, switch your sip investment in HDFC Growth Fund to HDFC Prudence Fund. This Fund has been a stellar performance since inception and continues to work its magic even in Bear Market conditions.
Just because you can stay invested for 20 years, does not mean "Invest and Forget". Keep reviewing your investments every 6 months or so to see any noticeable change in any fund's mandate/performance/attribute.
Slowly, as the years progress, switch out from Opportunities Funds to Large Cap Funds to give better stability to your Portfolio.
Anyway, good work. Keep going on.
Best of luck,
Srikanth Shankar Matrubai.

Also visit http://equityadvise.blogspot.com for an indepth Equity Analysis

1 comment:

  1. Hi Srikanth,

    I am badarinath C.R. planning to invest 6,00,000 each year for 20 years.as per your advice which is good mutual fund or ULIP ( i am planning to invest for my kid education)

    ReplyDelete

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