How to rebalance my MF portofolio?



I have invested in these ELSS(Dividend/Dividend Reinvestment)

1. Sundaram BNP Tax Saving
2. Birla Tax Relief’96
3. HDFC Long Term Advantage Fund
4. ICICI Prudential Tax Plan
5. SBI Magnum Tax Gain

Of these 5, only HDFC, ICICI are doing well.

I have invested in Equity/Balanced funds too(Dividend/Dividend Reinvestment)

1. UTI Children Career Plan(balanced)
2. LIC Money Plus
3. HSBC Equity
4. Reliance Growth Fund
5. Reliance Diversified Power Sector
6. Sundaram BNP Paribas Select Focus
7. Sundaram BNP Paribas Select Midcap
8. ICICI Prudential Infrastructure Fund
9. DSP BR Top 100 Equity
10. DSP BR India T.I.G.E.R

Of these 10, only DSP BR Top 100 Equity, DSP BR India T.I.G.E.R, ICICI Prudential are doing well

Please suggest me a good strategy to rebalance my portfolio. As the market is swinging I am not considering debt/gilt funds. Instead I prefer bank FDs.

Thank you very much

Regards

Raj
Sundaram BNP Tax Saver10000
SBI Tax Saver5000
Birla Sun Life Tax Saver5000
Principal Personal Tax Saver 5000
ICICI Prudential Tax Saver5000
HDFC Long Term Advantage Fund 5000
LIC MoneyPlus10000
Sundaram BNP Select MidCap17500
Sundaram BNP Select Focus17500
Reliance Growth11500
Reliance Diversified PowerSector5000
HSBC Equity10000
ICICI Prudential Infrastructure19000
DSP BR India T.I.G.E.R25500
DSP BR TOP 100 Equity 22500
UTI Children Career Plan (Balanced)10000
NSS10000

How to rebalance my MF portofolio?
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4 Replies to “How to rebalance my MF portofolio?”

  1. Most of your current MF are Tax Saving, in this funds wii do good on long run like 5- 10 years, dont go for balanced fund, invest in reliance power,Sundaram Midcap.



  2. Raj for balancing purpose we need to know abt your percentage holdings in each fund of your total invest plus at what nav u entered and current nav . even this is not enough again we need to know about your risk apatite ( your risk taking ability) then only an adviser is able to guide.. without knowing any basic data with just a scheme name no adviser can give you the balancing advice properly


  3. To be honest , this question is very difficult to answer. I have these suggestions. Trim the tax saving to 2-3 funds. You can chose sundaram tax saver, sbi magnum taxgain. The third fund can be birla tax saver or Principal Tax saver. This is because Principal Tax saver’s major allocation is in midcap stocks. So it will give you return boost once the market improves. Or you can go conservative with Birla tax saver or Franklin Templeton tax saver scheme or their index tax saver. Sundaram tax saver and magnum tax gain are leading ones in terms of five year returns.

    Choose DSP BR Top 100, Reliance Growth. The major allocation must be on DSP BR Top 100, because Reliance Growth is more midcap oriented. If you can time the sector well you can choose ICICI infrastructure or Reliance Power sector. If you can’t, it better to avoid them. Only a small percentage of your portfolio must be there in sector funds. Other wise you can choose another diversified equity fund. Always give importance to long term performance, not 1-2 year performance.

    Having more than 6-7 funds causes over diversification, irregularities and your portfolio will be very difficult to manage. So keep that in mind too.





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