Investment Portfolio for long term returns

Q & A Forum › Category: Investments › Investment Portfolio for long term returns

VelagaNaveen asked 8 years ago

Hi Shreekanth, I really get inspired to invest when i read your articles and this is the only forum i understand about investments very clearly. I wanted to know about my investment protfolio if it helps me to earn good returns in long term.One of the goal is to repay my home loan. Equity - Diversified: Franklin High Gr Com (G) , ICICI PruDynamic (G), AdityaBSL Equity (G) Equity - ELSS: AdityaBSL TaxRelie96 (G) Equity - Large Cap: DSP BR Focus 25 (G) Equity - Small and Mid Cap: DSP BR Small&MidCap (G) and Franklin SmallerComp (G) Debt - Short Term: DSP BR MMF (G) Equity - Sector Fund: Franklin Build (G). Thanks in advnce.Looking forward to your response

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Sreekanth Staff answered 8 years ago

Hi, Thank you for your kind and encouraging words! Almost all the funds are good ones. However, you have four diversified equity funds (ELSS can also be considered as a diversified fund). You may check portfolio overlap among these four funds. In case, portfolio overlaps are on the higher side say >50%, you may trim your portfolio (diversified set). Kindly read : https://www.relakhs.com/investing-mutual-funds-paying-home-loan/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/

VelagaNaveen replied 8 years ago

Thank you Sreekanth for your prompt response.To be more clear on the funds I had mentioned Equity – Diversified:AdityaBSL Equity (G),Equity – Sector Fund: Franklin Build (G) and Equity – Large Cap: DSP BR Focus 25 (G) are on my wife portfolio. However only Equity – Large Cap: DSP BR Focus 25 (G) is common in both portfolios.Also in addition to these funds, starting FEB, I am investing in ICICI Prudential focused bluechip fund(myself) and Franklin India Tax Shield fund(wife).And after reading your articles on term insurance I will stop right away my both LIC cash back policy insurance (it will be paid up) as I already completed 4.5 yrs and I am opting for icici smart protect term insurance.Please advise on the above

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Sreekanth Staff answered 8 years ago

Hi, Even if you are maintaining two diff portfolios, suggest you to check their overlaps. It helps! Because, instead of investing in say two funds with portfolio overlap of say 60%, you can drop either of it and pick more unique one. Hope you get my point! You may kindly take term insurance plan, get the policy bond and then discontinue the existing ones.