Advise on portfolio and asset allocation?



I am 42, an NRI Engineer and my monthly saving is Rs.2 lakhs that I want to invest properly.

My current investment is as follow:

1.40 lakhs in mutual funs invested so far in mutual funds via SIPs
2.5 lakhs in gold
3.5 lakhs to relative with 1% interest
4.25 lakhs in NRE FD with interest rate of 3-4%
5.PPF- Rs.3.5 lakhs
6.MIS total Rs.5 lakhs

Currently investing one lakhs per month, Via SIP in the following mutual funds.
(10,000 X 10 funds = One lakhs per month)

1.Reliance Regular Saving Equity
2.Birla Sun life frontline Equity
3.Reliance Growth
4.HDFC Equity
5.HDFC Prudence
6.HDFC TOP-200
7.Birala Sunlife Mid cap fund
8.Birala Sunlife 95 Fund
9.IDFC Premier Equity Fund
10.Kotak-30 fund

Please guide me for the following.

1.About asset allocation
2.Selection of funds
3.Where I should invest my remaining saving of Rs. One lakhs per month? I don’t need any money for next 6 years.
4.For debt investment, as an NRI what options are best – MIP? Debt funds?

Regards and I am really poor at finance

ram

Advise on portfolio and asset allocation?
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3 Replies to “Advise on portfolio and asset allocation?”

  1. The way you have invested so far tells me that you are not poor at finance.My thoughts:

    1.Invest around 25% of total assets in property.around 50-100 lacs.
    2.reduce mutual fund allocation & liuidate the FD i.e. take out money for property investment.
    3.pls have a few insurance poilices (endowment & money back) avoid ulip.May go for single premium policies.
    4.Your fund ALLOCATION SHOULD BE:
    A.property 35%
    B.Mutual funds 25%
    C.FD 10%
    D.gold 10%
    E.PPF 10%
    F.cash 10%(incl loan to relative)


  2. First you should have at least one month earnings in an emergency account.
    Second you should have a Pay YOURSELF first plan before you invest in anything.
    Do you have a six month supply of money in a money market account based upon your current income needs? If not begin to fund that until you do.
    Are you completely out of debt? If not get out of debt now.

    If you can satisfactorily answer the previous questions then you are ready to invest. Best place to start after that is with mutual funds that allocate for you. Schwab has online allocation tools if you want to use them that balance your portfolio for you. Good luck … Live DEBT free.


  3. Mutual fund investment is a diversification by itself. You do not need to invest in 10 funds. This will only reduce your returns. . Some funds will do well. Some will do badly. Net you will get less . Stick to 5 funds with a good value research rating.

    You can invest in the following 5 funds

    1) HDFC TOP 200

    2) DSPBR TOP 100

    3) DSPBR EQUITY

    4) RELIANCE GROWTH

    5) IDFC PREMIER EQUITY

    Regarding the other 1 lakh

    You can invest 50,000 in the following 3 funds

    1) HDFC PRUDENCE

    2) RELIANCE MIP

    3) BIRLA SUNLIFE MIP II SAVINGS 5

    The balance can be distributed into GOLD / PPF/ PROPERTY





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