Asset Allocation

Dear Brahma, Thank you for following my blog posts! You may consider picking 2 to 4 funds from Diversified , Mid/Small and balanced Fund categories. Can allocate more to mid/small cap funds as you have a longer investment horizon. Suggested readings : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-schemes-2017/ https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/ https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ https://www.relakhs.com/calculate-kids-education-goal-amount/  

Thank you sreekanth ... i will research  different AMC mutual funds and come back to you .. just to have further advice ...

Sure dear Brahma...

Hi Sreenkanth  sorry to bother you again .. while i am looking at the different funds exit load charges . I came across the below comment for one of the AMC balanced fund . Could you please explain to me what this means ..  thank you in advance. " Exit Load (%) For units in excess of 15% of the investment,1% will be charged for redemption within 365 days " Regards Brahmareddy.S

Dear Brahma Reddy, Let's say you invest Rs 10,000 in this fund, and if you redeem say anything above 15% of Rs 10k then on the redemption amount 1% is deducted as an Exit Load. For example : You redeem Rs 2,000 out of Rs 10k investment then 1% of Rs 2,000 i.e. Rs 20 is chargeable as Exit load.

thank you very much Sreekanth .. :)

Dear Sreekanth  After doing mutual fund analysis based on Valueresearch provided data , i have observed below mutual funds performance is quite good and less risky with high returns . MidCap: Mirae Asset Emerging Bluechip Fund - Regular Plan SBI Magnum Midcap Fund L&T India Value Fund Balanced: HDFC Balanced L&T India Prudence Fund Micro or Small: DSP BlackRock Micro Cap Fund - Regular Plan SBI Small & Midcap Fund MultiCap or Diversified: Franklin India High Growth Companies Fund ICICI Prudential Value Discovery Fund Large Cap : Mirae Asset India Opportunities Fund - Regular Plan Birla Sun Life Frontline Equity Fund As i said , am planning to allocate INR 50000 in total . As am planning to invest for longer duration ( I'e 30 years ) , could you please check the above listed mutual funds and provide your valuable suggestion in mutual fund scheme changes/money allocation to funds. thank you very much in advance for your review. Regards Brahmareddy.S 

Hi, All the listed funds are good ones. Are you planning to invest in all these funds? Kindly note that investing in multiple funds may not be really beneficial. Kindly read : https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/

Dear Sreekanth  sorry my question might confused you .. i have short listed the above listed funds based on the risk and returns . I would like to distribute INR 50000 to few of these funds.  Could you please suggest me how should i distribute . Am planning to distribute like below :  MidCap ( 2 funds ) - 16000 Hybrid or Balanced ( 2 funds ) - 12000 Diversified ( 1 fund ) - 10000 Largecap ( 1 fund )  - 5000 Smallcap ( 1 fund ) - 7000 is the above allocation okay ? or does it require any modifications ?  thank you in advance. Regards Brahma

Hi, As you have a very long investment horizon, it is ok to invest around 46% of your investible surplus in Mid/Small cap funds. Kindly do check portfolio overlap in case if you would like to invest couple of funds from same fund category (ex: Mid-cap). Mid -cap examples : Mirae emerging bluechip, HDFC mid cap opp, Franklin prima etc Balanced : HDFC balanced fund / Birla balanced fund '95 Diversified : Fine Small cap : Kindly note that fresh investments in DSP micro fund has been temporarily suspended. You may consider Franklin Smaller companies fund. Kindly read : https://www.relakhs.com/best-mutual-fund-schemes-2017/ https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/

thank you Sreekanth :)