Hi Sree,
Good Morning. Hope you are doing great.
- I would like to get an advise about portfolio review. I started my portfolio with VR on 2016. I am just adding my SIP and lumpsum through VR. what is my question is, Do I need to create another portfolio for this year o existing is fine? why I am asking this question is, so that I will come to know on yearly basis how much the fund gives the return.
- Also If I want to do re-balance om my portfolio, How to do? Do I need to stop the SIP on "X" fund and start the SIP on other fund?
1 Answers
Dear Raja,
I am doing good, thank you! Trust all is well with you!
Let's say you have 10 year horizon, you may end up with 10 portfolios. Too many funds may not actually need to diversification and not advisable as well.
We have limited number of Companies in stock markets, there will definitely be overlap if we keep on buying too many funds, which can be avoided.
Suggest you to have minimal portfolio, keep making additional investments/continue existing SIPs and keep a track of your portfolio as well as individual funds' performances.
Personally, I believe that re-balance can be done in two occasions ;
1 - If we get very high / abnormal returns from Equity funds in a year, one can book some profits and diver this to debt funds/securities as per requirements.
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2 - Let's say you a 10 year goal. You may invest in high risk profile schemes (like equity funds /stocks) for say 5 to 6 years, and then can slowly re-balance your portfolio towards safer bet.
Kindly read :
https://www.relakhs.com/portfolio-tracking-mutual-funds/
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