My MF Portfolio review

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mithuncd asked 6 years ago

Dear Sreekanth, First of all, thank you very much for all the posts ,really helpful ! I have a query to you regarding Portfolio for my tow financial Goals. So planning to build a portfolio using SIP as below. Plan is to have funds separated for Goals(For ease).Other basics such as Life insurance & Emergency fund are already in place. Goal 1 : This is for wealth accumulation for my retirement 20-24 years from now. Plan is to have a Portfolio with Equity to Debt ratio 60:40. Debt portion will be managed by EPF. 1) ICICI pru Equity and Debt Fund : 11,000 PM 2) Parag Parikh long term equity fund : 9,000 PM 3) UTI Nifty Index Fund : 3,500 PM Goal 2 : This is for Kids education 18 years from now. Plan is to have a Portfolio with Equity to Debt ratio 60:40. Debt portion will be managed by PPF. 1) HDFC Hybird Equity Fund : 5,500 PM 2) Adity Brila Sun life tax Relief 96 : 5,500 PM ( Used as a muticap to fully use 80c) Plan is to increase SIPs 5-10% every year. Appreciate if you can check the equity part and suggest your thoughts on MF funds. Also i had invested around 70k(via SIP) in Franklin India Blue chip fund,mainly for my Goal 1 over last 2 years. The performance has not been that great,do you still suggest to continue SIP or redeem the money and look for another large cap/index fund (UTI Nifty Index) already mentioned in my list) I am aware that 2 years is not an ideal time frame to judge a fund,hence asking ! Regards Mithun

3 Answers

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Sreekanth Staff answered 6 years ago

Dear Mithun,
Thank you for the appreciation and glad to know that you find my blog posts useful!
Suggest you to check the Funds' portfolio overlap.
For ex; If we check the overlap between UTI Nifty Fund Vs HDFC Hybrid Fund, the % overlap is around 50%. So, it really does not make sense to stay invested in both the funds (off-course these portfolios may change over a period of time.)
Related article :
Mutual Fund Portfolio Overlap Comparison Tools
Otherwise, all the above listed funds (individually) are fine.
Also, you may ear-mark investments in Birla fund for retirement than for Kid's goal, considering there can be some inconvenience to withdraw funds (requires planning) as the units are locked for 3 years.

mithuncd replied 6 years ago

Thanks Sreeknath, I had observed the overlap of HDFC midcap and UTI Nifty fund , but felt it is fine as these were tagged to different goals.
If not the case do you suggest in investing in different mid cap fund ? Looking into your suggestions, SBI Hydbird can be an option but lack of downside protection is a worry for me .
Also what is your thought of going for a Dynamic allocation / Multi asset Hybird instead of a Agg Hybrid fund?
Also do you have any suggestion on my existing Franklin blue chip fund mentioned in the post ?

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Sreekanth Staff answered 6 years ago

Hi, It is HDFC Hybrid fund right?? or HDFC Mid-cap? You may stop future SIPs in Franklin bluechip and divert them to UTI nifty index fund instead.

mithuncd replied 6 years ago

Sorry, I meant HDFC Hybrid Equity fund.

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Sreekanth Staff answered 6 years ago

Hi, You may consider putting some money in Multi-asset fund :)