Asset Allocation Continued

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brahmareddy asked 9 years ago

Dear Sreekanth Finally i have shortlisted the below funds with allocation in % . In total am planning to invest INR 50000 . Could you please review and help me if this allocation or funds requires any modification . thank you in advance . Type Of Fund No.Of Funds Allocation Percentage Fund Names Mid 2 30% DSP BlackRock Small and MidCap Fund - Regular Mirae Asset Emeging BlueChip Fund Small 1 10% Franklin India Smaller Companies or Reliance Small Cap . Which one is best ? Multi 1 20% Franklin India High Growth Companies Fund or ICICI Prudential Value Discovery Fund . Which one is best ? LargeCap 1 10% Mirae Asset India Opportunities Fund - Regular Plan ELSS 1 20% Axis Longterm Equity Fund Balanced 1 10% HDFC Balanced Fund Regards Brahmareddy.S

12 Answers

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Sreekanth Staff answered 9 years ago

Dear Brahma Reddy, 1 - My suggestion would be to go for Franklin Smaller companies fund. 2 - Multi cap both are decent ones.The long term performance of ICICI Value dis fund is still one the best, however its performance has not been up to its mark over the last few months. Kindly read : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ 3 - Are you planning to claim tax deduction on ELSS fund investments? (Axis LTE)

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brahmareddy answered 9 years ago

Dear Sreekanth thank you very much for your response . Am not planning for any tax savings . This fund - Axis Long term Equity Fund performance is good compared to other large cap funds . so i have choosen this for my long term large cap investment. Again thank you for reviewing .. Regards Brahmareddy.S

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Sreekanth Staff answered 9 years ago

Hi, If one of your investment objectives is not 'tax saving', you may avoid investing in an ELSS fund. Instead you may add both Multi-cap funds to your portfolio.

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brahmareddy answered 9 years ago

Dear Sreekanth thank you very much .

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brahmareddy answered 9 years ago

Dear Sreekanth sorry for bothering you again on the same topic . My question is it okay to keep your SIP amount in ( Mid Cap + Multi Cap ) only ? Because as we are seeing the returns on Small Cap and Large Cap is less compared to Mid and Multi Caps in long run I'e > 15 Years . thank you in advance for your review. Regards Brahmareddy.S

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Sreekanth Staff answered 9 years ago

Dear Brahma Reddy, Personally, I prefer investing in one Multicap/ELSS fund, one Balanced fund, one Mid-cap fund and one Small cap fund. Large cap can be an optional one (based on time-frame, risk profile etc.,). Kindly read : https://www.relakhs.com/my-mutual-fund-portfolio-mf-picks/

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Sreekanth Staff answered 9 years ago

The main reason for saying Large cap as options for long time-frame is..depending on the market conditions, we generally see the fund managers of Multi-cap funds (diversified) sometimes allocate more to Large cap stocks too...So, diversified funds can server the purpose..

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brahmareddy answered 9 years ago

Dear Sreekanth thank you very much for your suggestion . Based on your input and my research ( I'e from value research ) ,, i have selected the below funds in each category . I hope these can provide best returns in long run . Small Cap -> Franklin India Small Companies -> 7500
Mid Cap 1 -> DSP BlackRock Small and Midcap Fund -> 10000
Mid Cap 2 -> Mirae Asset Emerging Blue chip Fund -> 7500
Multi Cap 1 -> ICICI Value Discovery Fund -> 10000
Multi Cap 2 -> Franklin India High Growth Companies -> 5000
Balanced -> HDFC Balanced Fund -> 10000 do you see any issues with allocation and funds ? thank you very much in advance. Regards Brahmareddy.S

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Sreekanth Staff answered 9 years ago

Dear Brahma Reddy, Hope you had checked their Portfolios overlap and checked their Risk ratios.. You may go ahead with your investment plan. Yes, we can do only two things with respect to equities..invest in right schemes as per the requirements and hope for the best..

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brahmareddy answered 9 years ago

Dear Sreekanth yes i had checked the portfolio overlap and choosen the least over lapped/best returns/low risk funds in each category . thank you very much Sreekanth for your support and guidance . :) Regards Brahmareddy.S

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Sreekanth Staff answered 9 years ago

You are welcome! You may kindly share the articles with your friends and do keep visiting ReLakhs.com .

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brahmareddy answered 9 years ago

sure definitely i will share my views about this site to my friends .. I have understood few other things as well by following this site blogs.. thank you very much sreekanth .