Hi Srikanth ,
First of all big thanks for creating this blog, it helped me a lot to understand the investment basics and streamline my portfolio. Your suggestion helped me to get intended return toward my goal.I am a big fan of your blog and regular follower.
One year back , with your suggestion have aligned the portfolio and investing in below listed funds. Currently I am investing 3000 in each fund. I want your help to review this portfolio and suggest if any changes need to be done. Goal is long term wealth creation with a view of 10 year specifically for my children (Son 1 year and daughter 3.5 yr). I am having 50 lkh term policy and home loan of 6 lakh remaining.
Can you please review the portfolio and suggest if any change is required. I am also planning to add Aditya Birla Sun life Mid cap fund to portfolio. Considering recent changes to MF reclassification can you suggest what changes I can do to my portfolio . HDFC BALANCED FUND – REGULAR PLAN – GROWTH
ADITYA BIRLA SUN LIFE FRONTLINE EQUITY FUND – GROWTH
Franklin India High Growth Companies Fund GROWTH
Franklin India PRIMA PLUS GROWTH
ICICI PRUDENTIAL VALUE DISCOVERY FUND – GROWTH
SBI BLUE CHIP FUND – REGULAR PLAN – GROWTH
Thanks and Regards
Ketan Shah
2 Answers
Dear Ketan,
Thank you for being my loyal blog reader and for your appreciation!
Individually all the above listed funds are decent ones. However, investing in multiple funds that too from same fund category (especially after reclassification) may not be really beneficial.
For ex : You have two large-cap oriented funds SBI Bluechip & Birla Frontline. Kindly note that both have been consistent good performers, but holding two similar funds may lead to higher portfolio overlap.
So, suggest you to check their portfolios overlap after couple of months and can retain either of them.
In its place, as mentioned in your query, you can add one mid-cap fund.
Ex : HDFC Mid-cap or Franklin Prima fund are my picks.
Kindly note that Franklin High Growth Cos fund will now be positioned as a Focused Fund (fund will hold max 30 stocks) and ICICI pru Value discovery fund as 'Value based fund'.
Kindly read :
Thanks Shreekanth , for quick response. So are you suggesting any change for Franklin High Growth and ICICI pru Value discovery. If yes then which funds can bought instead of these.
Please login or Register to submit your answer