[nowwhat?]

Originally Posted by murillo

After some amateur look-see, I have zeroed on the below 5 funds:

I think there are at least 2 funds too many. Multicap, Balanced and Largecap all together does not make a whole lot of sense.

[searacer932]

Originally Posted by jasonblr

I am little confused on the above - you say that you got the MFs setup in FundsIndia but how are you able to get into a Direct Plan? My understanding is that Direct plan is when you don't go through an intermediatery (like FundsIndia).

Btw, I am thinking of going with Scripbox - any suggestions?
Also, what if you take the suggestions of Scripbox and do your own Direct SIP from the AMC themselves? Won't it be the same? All MFs have exit load of 1% if you go out in 18 months / 24 months so Scripbox's rebalancing idea - I don't get it.

Once you get the folio number, you could do a direct SIP with the respective mutual fund company. You don't have to go via Funds India.

[murillo]

Originally Posted by dmplog

In Small Cap, I would have chosen 'Franklin Templeton Smaller Companies Fund'. All other find choices are solid!
Keep investing.

In Small Cap, I am not findings many candidates. The 'FT Smaller Companies Fund' looks like a great choice; however, I am led to believe I should not invest in multiple funds with a single fund house. FT's funds more often than not makes it to the top of the list; hence, the problem.

Originally Posted by nowwhat?

I think there are at least 2 funds too many. Multicap, Balanced and Largecap all together does not make a whole lot of sense.

My thinking is that with a balanced fund, I will get some exposure to the debt side. Regarding the large cap and diversified fund choices, I agree with you that there is an overlap between 'Birla Sunlife Frontline Equity Fund' and 'FT India Prima Plus.' That is why it is looking one too many. My belief is that 'Frontline' is a pure large cap stocks player, while 'Prima Plus' has the mandate to invest outside of this. 'Prima Plus' may not be an full-fledged multi-cap player. Do you have any suggestions for a great diversified fund that invests across all markets caps?

[deepv]

Originally Posted by murillo

...
Large cap: Birla Sunlife Frontline Equity Fund
Diversified: Franklin India Prima Plus Fund
Balanced: HDFC Balanced Fund
Mid cap: Mirae Asset Emerging Bluechip Fund
Small cap: DSP Blackrock Micro Cap Fund

Originally Posted by murillo

In Small Cap, I am not findings many candidates. The 'FT Smaller Companies Fund' looks like a great choice; however, I am led to believe I should not invest in multiple funds with a single fund house. FT's funds more often than not makes it to the top of the list; hence, the problem.
...

I would also go with Franklin Ind Smaller Comps in that space.

To address your other concern, I would suggest looking at PPFAS-LTVF in diversified category.
Since you are looking at very long term, its value investing philosophy should work great for you and its a truly diversified fund with some percentage of investment in foreign equities as well.

[nowwhat?]

Originally Posted by murillo

My thinking is that with a balanced fund, I will get some exposure to the debt side.

Since we don't know how you are going to allocate funds and assuming that you allocate equally, a balanced fund makes no sense at all. Say you put ₹5,000 in the 5 funds you selected at ₹1,000 each, your maximum exposure to debt will only be ₹350.

Having max 7% exposure to debt makes no sense to most investors, hence if you have a balanced fund, it must instead be the core fund in your portfolio.

Originally Posted by murillo

Regarding the large cap and diversified fund choices, I agree with you that there is an overlap between 'Birla Sunlife Frontline Equity Fund' and 'FT India Prima Plus.' That is why it is looking one too many. My belief is that 'Frontline' is a pure large cap stocks player, while 'Prima Plus' has the mandate to invest outside of this. 'Prima Plus' may not be an full-fledged multi-cap player.

Frontline has 11% mid caps and has in the past gravitated towards mid caps as well. Prima Plus is multicap (or if you prefer you can call it diversified), but multicaps as a category are not as dynamic as people imagine it to be.

Since you are investing in a large cap fund, a mid cap fund and a small cap fund, beats me why you would want to invest in a multi cap fund also.

[murillo]

Thanks for all the comments. Looks like I have to do some more work.

Many fans here of the 'Franklin India Smaller Companies Fund.' Let me remove 'DSP Blackrock Micro Cap Fund' and replace it with 'Franklin India Smaller Companies Fund.' Now we have the below portfolio.

Large cap: Birla Sunlife Frontline Equity Fund
Diversified: Franklin India Prima Plus Fund
Balanced: HDFC Balanced Fund
Mid cap: Mirae Asset Emerging Bluechip Fund
Small cap: Franklin India Smaller Companies Fund

As nowwhat? says we are already covering a large cap, a mid cap, and a small cap fund, hence we will let go of the multi cap 'Franklin India Prima Plus Fund.' Since this is supposed to be an equity-growth portfolio, let us remove the balanced fund as well. So we are left with the below portfolio.

Large cap: Birla Sunlife Frontline Equity Fund
Mid cap: Mirae Asset Emerging Bluechip Fund
Small cap: Franklin India Smaller Companies Fund

3 of the top performers, across different market caps, and across multiple fund houses.

[Parth46]

Originally Posted by murillo

Thanks for all the comments. Looks like I have to do some more work.

3 of the top performers, across different market caps, and across multiple fund houses.

I'm a regular investor in both FT smaller companies AS WELL AS DSP BR Micro Cap fund, and trust me, both are excellent choices and you couldn't go wrong with one or the other.

Both the funds have given me great returns and have done really well, so I'd highly recommend both as there's not much to choose between these two.

I would actually tilt towards the DSP fund but like I said, both are great funds.

Cheers

[nowwhat?]

Originally Posted by murillo

Large cap: Birla Sunlife Frontline Equity Fund
Mid cap: Mirae Asset Emerging Bluechip Fund
Small cap: Franklin India Smaller Companies Fund

Looks golden to me.

Not sure if I communicated this correctly earlier, I love Balanced funds. They are tax efficient and diversified. It would suffice for anyone as a "fill it and shut it" (from the old Hero Honda? ads) kind of fund, but it MUST form the core of a portfolio and requires higher fund allocation.

Please ensure that your EPF (or if not PPF, ELSS, others under 80C) is fully funded so that there is some debt in your portfolio.

Bear in mind that you may lose some money in the next year or so. So SIP is a must + Direct Plans.

Originally Posted by Parth46

Both the funds have given me great returns and have done really well, so I'd highly recommend both as there's not much to choose between these two.

Actually Franklin has more exposure to mid-caps. DSPBR is more of a small cap pure-play and the only comparable fund I could find is SBI Small & Mid Cap. But bear in mind that before 2013 when it was acquired by SBI, this was a large cap fund IIRC.

[ontheroad]

How is Tata balanced fund when compared to Hdfc balanced fund? Value research online gives better rating for tata balanced fund.

[nowwhat?]

Originally Posted by ontheroad

How is Tata balanced fund when compared to Hdfc balanced fund?

Tata is superior, but only by a whisker.

[faustus77]

Originally Posted by ontheroad

How is Tata balanced fund when compared to Hdfc balanced fund? Value research online gives better rating for tata balanced fund.

Ontheroad
Hi.
In the last couple of months I have invested 3 times, just in case the market continues to slide.
My personal experience of HDFC has not been encouraging so in the last 2 years have not invested. What happens in the future is anybody's guess.
Regards

[searacer932]

Set up an online SIP for HDFC Balanced Fund. The folio number got generated online. So, I did not have to generate the folio number via Funds India by investing an initial amount for regular plan. ICICI and Birla Sunlife do not support such a thing at the moment. Let's see how it goes for HDFC balanced fund.

[sgiitk]

Originally Posted by ontheroad

How is Tata balanced fund when compared to Hdfc balanced fund? Value research online gives better rating for tata balanced fund.

I for one stick with the old favourite HDFC Prudence. I have been with them for well over a decade. I remember Valueresearch once said, a balanced fund which thinks it is an Equity Fund.

[ontheroad]

I also hold prudence for more than 6 years. Off late, funds of HDFC are under performing the benchmarks. Seriously thinking of switching to Tata balanced fund for my balanced fund investments.

[murillo]

On a different note, I found many funds from SBI mutual fund company making it to the top at least statistically speaking. However, I do not find much mind share for their schemes. Even in this thread, SBI funds are not much discussed. Can any one provide some insight into this? Or am I missing some obvious issues with SBI mutual fund?