[saket77]

Originally Posted by Oxy

SBI Small Cap Fund - 45%
L&T Mid Cap Fund - 30%
Reliance Equity Hybrid Fund - 15%
Reliance Income Fund -10%

Small cap allocation is very high. Cut that to something between 10-15%. Induce the balance into a hi-cap fund. That will give your portfolio some stability along with the balanced fund that you have chosen.

Regards.

[Oxy]

Originally Posted by audioholic

I am not any fund expert, but I feel the allocation to small cap is quite large and risky. I personally would swap your Equity hybrid and smallcap allocation to make it sound simple.

Originally Posted by saket77

Small cap allocation is very high. Cut that to something between 10-15%. Induce the balance into a hi-cap fund. That will give your portfolio some stability along with the balanced fund that you have chosen.

Regards.

Thanks a ton guys.

How about this then:

ICICI Prudential Bluechip -25%
Birla Sun Life Frontline Equity - 15%
Mirae Asset India Opportunities - 15%
SBI Focused Equity - 15%
HDFC Midcap Opportunities - 15%
Reliance Equity Hybrid - 15%

Any better replacements for these? I am trying to build an aggressive portfolio.

[Oxy]

One more query:

The RBI sovereign gold bonds are open for subscription from today till 13th September. Does it make sense to invest in them considering the high gold prices at the moment?

[hothatchaway]

Originally Posted by Oxy

Thanks a ton guys.

How about this then:

ICICI Prudential Bluechip -25%
Birla Sun Life Frontline Equity - 15%
Mirae Asset India Opportunities - 15%
SBI Focused Equity - 15%
HDFC Midcap Opportunities - 15%
Reliance Equity Hybrid - 15%

Any better replacements for these? I am trying to build an aggressive portfolio.

You are looking for a magic mix of funds which nobody can provide you with. The recommendations will be those that have worked for others but may not for you.

I suggest you take a step back and determine what your goal is and the corpus needed. Examine your current financial situation and your likely cash flow and calculate the rate at which your investment needs to grow to build the corpus, in short take a portfolio approach.

Spend time reading and understanding not only mutual funds but also other instruments like ppf, bonds etc. It's your finances and there can be no short cuts. Once you realize that you know enough to pick funds on your own, is when you have done your basic homework.

If that sounds too ardous or you are disinclined in this area, consult someone who does not have a vested interest in selling you a certain fund.

In conclusion, just adding to the good advice that the members have already given you in picking funds, if new to it, start with a few well large/multi cap funds from the leading fund houses just to test waters. Any fund with a large AUM and with plain vanilla fund labels ie avoid focused, contra etc will do. But do your homework first.

Good luck

[huntrz]

Originally Posted by Oxy

Keeping the above in mind, does the following allocation make sense?

SBI Small Cap Fund - 45%
L&T Mid Cap Fund - 30%
Reliance Equity Hybrid Fund - 15%
Reliance Income Fund -10%

Suggestions would be very helpful.

With such a high allocation to mid and small cap it is highly likely that you may lose faith in mutual funds as an instrument before you see your portfolio in green. The fluctuations are more pronounced in mid and small caps. Not many of us have the stomach to digest portfolios in red even after 5 years when FD should have give you a cool 40% absolute return. In a falling market SIP will average you NAV higher and eventually you will be seeing losses lingering longer. Losses hit us psychologically much harder than profits.

[ranjitnair77]

Originally Posted by Oxy

Thanks a ton guys.

How about this then:
ICICI Prudential Bluechip -25%
Birla Sun Life Frontline Equity - 15%
Mirae Asset India Opportunities - 15%
SBI Focused Equity - 15%
HDFC Midcap Opportunities - 15%
Reliance Equity Hybrid - 15%

So you have picked out 3 large-cap funds, 1 multi-cap, 1 mid-cap and 1 aggressive hybrid fund. The distribution is 55% largecap. 15% multi-cap, 15% mid-cap and 1 aggressive hybrid.

While I have no opinion on the funds that you have picked, I have a few views.

• 3 largecap funds sound too many. You don't need that many given that largecaps will be relatively less volatile.
• There is a growing view that actively managed largecap funds will not significantly outperform passive Index funds. Do read up about it. So you can significantly simplify the portfolio by just picking a Nifty 50 fund if you subscribe to that view.
• Do take a very close look at the portfolio of each fund. You will find that many of the funds will have a significant portfolio overlaps.
• Take a close look at the expense ratios. I'm assuming that you will invest Direct.
• I see no reason to have an aggressive hybrid fund. Just confuses things. I would recommend redistributing that to the multicap or midcap. Use pure debt/FD for protection.

If I was doing this, it would be 3 funds. 50% index. 25% multicap and 25% midcap. It's simple and I would just forget about my portfolio for the next 3 years and keep the investments going.

[Oxy]

@hothatchaway @huntrz @ranjitnair77

Thanks a ton for the guidance, it really helps.

[JediKnight]

One more default:
https://www.moneycontrol.com/news/bu...k-4433401.html

Wondering how many more skeletons to roll out of the closet. I have large amount of funds ( by my humble standards ) earmarked to be invested in ultra short term debt funds. But news like these make me nervous and i just cannot garner enough courage to get into these funds. One can argue that the banking sector is actually more vulnerable to the current crisis, but i feel the government will have no choice but to salvage banks, not so for debt funds.

[lapis_lazuli]

Dear All,

I am 45, salaried, not risk averse (not a gambler, either lol) and this is what my SIP kitty looks like:

1) HDFC Top 100 + SBI Bluechip : 35% composition
2) ICICI Banking Equity Sectoral : 9%
3) ICICI FMCG Fund : 6%
4) ABSL Digital India Fund (IT sector mostly) : 15%
5) HDFC Hybrid Equity : 15%
6) HDFC Short term debt : 15%
7) ABSL Regular savings Fund : 5%

SO: Large cap about 35%, Sectoral(bank + FMCG + IT) : 30%, Balanced : 15% and pure debt 20%

Does this look OK? Should I rebalance?

I believe in SIPs and also buying lumpsums whenever an index is down by about 2-2.5% if I have some cash lying around.

[hothatchaway]

Originally Posted by lapis_lazuli

Dear All,

I am 45, salaried, not risk averse (not a gambler, either lol) and this is what my SIP kitty looks like:

1) HDFC Top 100 + SBI Bluechip : 35% composition
2) ICICI Banking Equity Sectoral : 9%
3) ICICI FMCG Fund : 6%
4) ABSL Digital India Fund (IT sector mostly) : 15%
5) HDFC Hybrid Equity : 15%
6) HDFC Short term debt : 15%
7) ABSL Regular savings Fund : 5%

SO: Large cap about 35%, Sectoral(bank + FMCG + IT) : 30%, Balanced : 15% and pure debt 20%
.

I feel sectoral/thematic funds are redundant; most large cap funds are anyways dominated by big banks and the likes of infy/tcs. You may consider a multi cap fund instead.

Liquid/ultra short bond debt are perhaps more predictable than the other debt fund variants. Stick to funds with diversified portfolios from big fund houses for debt to manage risk.

[lapis_lazuli]

Originally Posted by hothatchaway

I feel sectoral/thematic funds are redundant; most large cap funds are anyways dominated by big banks and the likes of infy/tcs. You may consider a multi cap fund instead.

Liquid/ultra short bond debt are perhaps more predictable than the other debt fund variants. Stick to funds with diversified portfolios from big fund houses for debt to manage risk.

Thanks. I will reduce a few, may be if not totally stop, and balance a bit here and there. Maybe also add a bit of mid and small caps totaling 5-6%.

[HydroFuel]

Hi
I have some funds around 10 lac available now. I want to invest in Mutual Funds through my Axis Bank. It is for long term with mostly low risk. My RM in Axis Bank suggested 60% + 40% +10% ratio. 10% shall be high risk. Also it shall be invested in next 6 months every month. My age is 50 now. If required the funds can be chaned after 3 years. He has initially suggested
1. Axis bluechip fund
2. Kotak multicap fund
3. Axis multicap fund
4. Axis Dynamic equity fund.
Can you suggest other options in Large Multi cap and other high risk fund?
My daughter is in 10th standard but she is not going for Engineering or Medical field. So I will not require much fund. I am not dependent on these fundsto be invested. I am also planning early retirement say in next 3 to 5 years. My pension would be around 30k when I take early retirement.

[sagarpadaki]

Originally Posted by HydroFuel

Hi
I have some funds around 10 lac available now. I want to invest in Mutual Funds through my Axis Bank. It is for long term with mostly low risk. My RM in Axis Bank suggested 60% + 40% +10% ratio. 10% shall be high risk. Also it shall be invested in next 6 months every month. My age is 50 now. If required the funds can be chaned after 3 years. He has initially suggested
1. Axis bluechip fund
2. Kotak multicap fund
3. Axis multicap fund
4. Axis Dynamic equity fund.
Can you suggest other options in Large Multi cap and other high risk fund?
My daughter is in 10th standard but she is not going for Engineering or Medical field. So I will not require much fund. I am not dependent on these fundsto be invested. I am also planning early retirement say in next 3 to 5 years. My pension would be around 30k when I take early retirement.

Since you are investing via Axis bank, i do not know how flexible is your fund selection.

Since you are aligned towards low risk for the 10L that you want to invest, i would recommend these
1. Parag Parikh long term equity -> Multi cap
2. Mirae asset hybrid/ ICICI prudential Equity and Debt.
3. Axis bluechip ->Large cap

[sansvk]

Originally Posted by HydroFuel

Hi
I have some funds around 10 lac available now...

1. You don't need to invest via the bank's RM. Just go to the individual mutual fund website and invest directly. This should give you 1 to 2% extra returns.
2. Out of the funds selected, just invest in the first 2 funds mentioned on your list.
3. Invest 25k via 2 SIPs per month, so that investment is spread over a 10 month period.
4. Don't bother investing in riskier funds considering your age and time period.

[ghodlur]

MF experts,

A query (actually asked by my father). My dad has a retirement corpus of 23L which wants to use to cover his monthly expense of 35K. Is there a mutual fund which can give good returns with max safety on corpus at the same time as monthly withdrawals.

My suggestion of using a liquid fund and doing a SWP isn't interesting to him. He wants the corpus to maximum period utilization.

Any website where I can show him the comparison of FD vs Mutual fund with the chart of reducing corpus and withdrawals.