Mutual Fund portfolio review (Long Term)

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Bhaduri.subha@hotmail.com asked 8 years ago

Hi Sreekanth, I am 31 years old and investing in mutual fund for the past 1.5-2 years. My time horizon is 5+ years and risk profiling is almost aggressive. I am saving for my first house. My funds are: 1. ABSL Focused Equity: 6k 2. ABSL Equity advantage: 6k 3. ICICI Value discovery: 8k 4. L&T India value: 5k 5. Motilal Oswal long term equity: 3.5k 6. RELIANCE tax saver: 3.5k Can you please suggest if these are promising for long term and do I need any immediate change to my portfolio? P.s. I have 4-5 months of expenses kept aside for emergencies.

2 Answers

1 Vote Up Vote Down

Sreekanth Staff answered 8 years ago

Hi, The listed funds are decent ones. However, your portfolio has funds that are mostly Focused or Value oriented based ones (1 to 4). 1 - Focused Large cap 2 - Large / Mid-cap 3 - Value based Mutlicap 4 - Value based Mutlicap 5 & 6 - ELSS Funds Kindly note that units allotted under each ELSS SIP get locked in for 3 years, so if you need money in next 5 years, you need to kindly plan your investments and withdrawals accordingly. Suggest you to check overlap among the above funds and revert to me with your analysis / further queries ; Kindly read :

Bhaduri.subha@hotmail.com replied 8 years ago

Hi Sreekanth,

You are absolutely right about overlapping in my 1st and 2nd fund. Can you please suggest a different option?
It can be either large or large and mid..
Regarding 3rd and 4th, though both are value oriented multicap after recent sebi changes, but 3rd one is mostly invested in large caps and the 4th into mid and large companies, so both much overlapping there.
Regarding 5th and 6th, I have the lock in period in mind and will plan accordingly.

Bhaduri.subha@hotmail.com replied 8 years ago

Hi Sreekanth,

What about UTI NIFTY NEXT 50 Index fund in place of ABSL Focused Equity fund?

Anyways thanks a ton for you informative response earlier.

0 Vote Up Vote Down

Sreekanth Staff answered 8 years ago

Hi, Investing in Index based funds may make some sense after SEBI's new reclassification norms. But, as you have already invested in Focused Large cap fund, you may continue with it. If you need money in next 5 years, you may continue with your existing portfolio and advisable not to add a mid/small cap based fund.

Bhaduri.subha@hotmail.com replied 8 years ago

Thanks a lot for your insights, it is reassuring for me and will continue my current portfolio over long term.