Thursday, January 14, 2010


My regular reader Sri Divate wrote again “Your advise is absolute top class, Mr.Srikanth”. Thanks for your previous advise.

It was of immense help.

Kindly help me in rearranging my portfolio. As you know I am 50 yrs old and a Govt employee.
My present MF investment is ....
Units invest amt
Birla SL AAF -Aggrve (G)339.731 10,225
HDFC Prudence Fund (G) 83.937 10,357
HDFC Prudence Fund (G) 32.403 5,000
LIC MF Equity Fund (G)1170.026 25,000
LICMFFloMIP-PlanA(AD)2068.218 25,005
Reli Diver. Powe -RP(G) 165.751 11,000
Reli Growth Fund -RP(G) 36.108 15,000
Reli Growth Fund -RP(G) 35.648 12,000
Reli Natur Resoures (G) 977.995 10,005
Reli Vision Fund -RP(G) 93.150 17,000
SBI Mag Contra Fund (G) 400.834 25,000
SBI Mag Contra Fund (G) 438.745 25,000
SBI Mag Global Fund (D) 975.17 24,000
SBI Mag Global Fund (D)1360.750 45,000
SBI Mag Index Fund (G) 86.291 1,979
SBI Mag Insta Cash (C) 902.362 17,119
SBI Mag Tax Gain (D) 182.630 10,001
UTI VIS-Inde Linke (D)1759.201 25,000
Total 323,691

1. Whether is there any need of rearranging present folio to get better returns.
2. If some of the funds are to be rearranged then which funds.
3. I have kept about 20K in cash fund so that if market goes below NSE 3000 ? to switch to equity funds.
4. What is the Nifty target when to convert the equity funds to cash funds and vice versa.... if this has to be done.

With best wishes

Dear Divate,
Shockingly, your portfolio is concentrated in SBI Mutual Fund which accounts for 50% of your portfolio. It is never a wise to have a concentration in one Single AMC. Ensure that all your future investments go to non-SBI amc to avoid over-exposure and ensure Diversification.

Out of your present MF Investment, you can continue holding the following Funds:
HDFC Prudence Fund
LICMF Monthly Income Plan
Reliance Growth fund
Reliance Natural Resources fund
SBI Magnum Contra fund
SBI Insta Cash Fund
SBI Magnum Index Fund

You should EXIT the following funds completely
LICMF Equity Fund
Reliance Diversified Power Sector Fund
SBI Magnum Global Fund
UTI VIS Index Linked fund

You also switch the following funds
Reliance Vision fund to Reliance Regular Savings Fund (Balanced) Fund.

From the Amount received from the Exit of Funds, you invest in a Debt Fund like Birla Income Plus or HDFC Income Fund and go for Systematic Transfer Plan in a Plain Diversified Fund and you can also look at investing HDFC FlexIndex

which Transfers your Debt Fund Amount at Pre-assigned Index Levels.
Avoid Sector funds and also look at alternative assets like Corporate FDs, FMP, etc. to diversify your portfolio.
Keep a regular tab on your portfolio and make appropriate changes, if required.

Visit my blog for more details.
Best of luck,
Srikanth Shankar matrubai

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