Investment planning & Review (MF Schemes)

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sananns asked 9 years ago

Hi, I have been investing in the following MF's for long time and I would like to know if these are still good to continue through year 2018. NOTE: I have reviewed each of them in various online forums and many give different views at different times. For example, Recommendation for UTI Opportunities fund is to exit, however, last year, this was a buy recommendation. Aged 45, my investment horizon is very long term (15 to 20 years). Please advise your views on this and if they are good to continue through year 2018. - SBI DYNAMIC BOND FUND - GROWTH (investing since 2013) - Goal: Hedge - HDFC BALANCED FUND - GROWTH (investing since 2014) - Goal: Hedge - ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND - GROWTH (investing since 2013) - Goal: Retirement - Franklin India Bluechip Fund - Growth (investing since 2016) - Goal: Child marriage) - UTI OPPORTUNITIES FUND GROWTH (investing since 2013) - Goal: Child education - SBI Emerging Business Fund Regular Plan - Growth (investing since 2013) - Goal: Retirement Thanks

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Sreekanth Staff answered 9 years ago

Hi, May I know what is meant by 'Hedging as a Goal'? Let's understand the fact that no scheme can remain in number 1 position forever, what we need to aim for is 'whether it is consistent or not', is it delivering returns beyond its benchmark returns and if its returns are more than its average category returns. If a fund does not get a 5 star rating (these are ratings are generally based on recent performances only), that does not mean we need to churn our portfolio. If we analyze the returns of SBI emerging fund, its performance is not in top 10 mid-cap fund over the last 5 / 10 years. You have two consistent large cap performers (Franklin bluechip & ICICI Focused), so you may discontinue your investments with UTI opp (as it is primarily a large cap oriented fund, as of now, based on its portfolio allocation). You may add one multi-cap fund : Ex : Franklin High Growth companies fund / Birla Equity fund etc., 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/

sananns replied 9 years ago

Thanks Sreekanth. The reason I put two fund against Hedge is really for capital protection I know this is possobly not hte right way to do. Would you recommend keep these two (SBI DYNAMIC BOND FUND – GROWTH and HDFC BALANCED FUND) for long term against my specific goals (Retirement, Child marriage / education)?
Also, would you recommend (along with UTI opp fund), that I move out of SBI emerging businesses fund as well to something else in 2018?

Sreekanth Staff replied 9 years ago

Hi..Its fine to invest in a dynamic bond fund for long term. You may retain HDFC Balanced fund and may move out of UTI opp fund and SBI emerging fund. Can consider adding one multi-cap fund and a new mid-cap fund, ex : HDFC mid-cap opp or Mirae Emerging blue chip etc.,