My current portfolio:
SBI Bluechip Fund: Rs 2.45 lakh
ICICI Pru Bluechip Fund: Rs 3.9 lakh
Principal Emerging Bluechip Fund: Rs 50,000
Motilal Oswal Multicap Fund: Rs 35,000
Kotak Standard Multicap Fund – Rs 50,000, Mirae Asset India Equity Fund (SIP of Rs 5,000 per month)
HDFC Small Cap Fund – Rs 1 lakh
L&T Emerging Businesses Fund – Rs 37,500
HDFC Hybrid Equity Fund – Rs 5 lakh.
i have one too ELSS, IDFC Tax Advantage Fund – Rs 50,000 and Franklin India Short Term Fund – Rs 20,000.
— Ritika Jain
Juzar Gabajiwala, director of mutual fund research, Mumbai-based Ventura Securities, replied:
according to your current Investment, 90% of your allocation is in equity and 10% in debt (except for Franklin as it is in the process of winding up). In terms of portfolio, it is preferred to follow an asset allocation-based approach.
Assuming that you are below 50 years of age and you are a moderate risk taker investor, you can maintain a ratio of 75-80 (Equity): 25-20 (Debt). Review your allocation at least once a year and if you notice any major changes, re-arrange it to the original pre-determined allocation based on the risk appetite at that time.
The schemes in the portfolio are good but since you have started investing only two months back, it is too early to make a decision. Equity funds are generally held for more than 5 years for them to give good returns.
Going forward, whenever you put additional funds in equities, you can invest 6-12 months instead of investing all the money at one go. You can also check out Asset Allocator Funds which are purely asset allocation-based mutual fund schemes. Also, as per your current investment, the market cap allocation is 67% in large caps, 13% in mid caps and 9% in small caps.