Please comment on this mutual fund portfolio.?



Based solely on returns (moderate/high) and risk (low) suppose one decides to invest in the following funds. Please give your opinions whether this portfolio is a good one in the long term: Hdfc Top200 (27%), Hdfc Prudence(9%), Birla Sunlife Dividend Yield(9%), Idfc premier equity plan A (18%), Sbi magnum taxgain(18%), Uti dividend yield(18%). The aim is to maximize return, taking low risk. If you have any other suggestions to share regarding building reasonable portfolio, please share with me.
Another question, is it better to invest through SIP in more funds with smaller amounts or to invest large amounts in smaller number of funds. Thanks.

4 Replies to “Please comment on this mutual fund portfolio.?”

  1. That question is going to be really tuff to answer. The people who best know the answer are also the people who understand better than anyone that giving financial advice where someone could lose a lot of money is a legal liability.

    You are more likely to get advice from someone who doesn’t actually know enough to give good advice and very unlikely to get advice from someone knowledgeable.

    I’m afraid you have to do this on your own. There are college courses available to audit on subjects like this. If you intend to invest a significant amount of money, the cost in terms of both money and effort to attend a course is the best investment you could make.

    Jerry


  2. Its always better go for SIP to take full advantage of market volatility.
    Please avoid direct lump sump investment in stock-market atleast in current market scenario.
    About your portfolio of MFs.
    Try to be clear in your aim for investment.
    My personal thinking is that, you should invest in 4 categories of MFs
    1 – Large Cap MF
    2 – Mid & Small Cap MF
    3 – Gold ETF in SIP mode i.e. fixed units every month.
    4 – Pure Debt Fund ( I would say that better than this you should go for PPF)

    Go for dividend yield funds, if you want regular income.

    Hope I make myself clear.


  3. All your funds have a good value research rating. Visit http://www.valueresearchonline.com and register under portfolio. It will give you an idea of your portfolio break up.

    SBI magnum tax gain is not doing well. Go for a better rated fund in this category.

    Open a PPF a/c and invest some money in it.


  4. I suggest Investing in the growth funds of following equally.

    SBI
    Reliance
    HDFC

    These are the consistant good performers in the past.

    They have been investing in growth stocks.





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