Portfolio review - My MF Investments

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rajeshedp asked 8 years ago

Dear Srikanth, I'm 35 yrs old and I've the following funds in my portfolio for a longtime horizon 15 yrs for my retirement and my child's college eduction (he is 4 yrs now). I dont have any debt and currently saving 30K / month. My family expenses are 32K/month right now. I'm planning to take next month a term plan with Accidental coverage worth 75lacs for 22 years. Could you please suggest whether my selection is correct? All my funds currently are 9 months old (start date of mid 2016). Should i continue these for 10-15+ yrs or any modification required. I don't have any debt so all the below are for wealth creation. Apart from these i've invested in stocks for 25lacs and Fixed deposit holdings of 6 lacs . I've EPF accumulated amount of around 6lacs so far. I'm only relying on my employer's medical cover of 12 lacs family floating. I'm not sure whether i can save 30k / month after 2 yrs becoz of uncertainty in Job. Need your advise. 1. Canara Rebecco emerging Equities(G) - 4K 2. Mirae Assest emerging blue chip(G) - 4K 3. Reliance Growth fund (G) - 3K 4. SBI blue chip (G) - 2500 5. SBI magnum midcap (G) - 2500 6. DSP BR tax saver - 3K 7. Franklin Tax Shield - 3K Thanks

3 Answers

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Sreekanth Staff answered 8 years ago

Hi, 1 - Consider buying a Term insurance plan at the earliest and do not postpone the decision. You may buy a stand-alone (separate) Personal accident plan. Read: https://www.relakhs.com/best-online-term-insurance-plans-india/ https://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/ 2 - Its not advisable to depend entirely on Employer provided group health cover. You may buy a Family floater plan. Read: https://www.relakhs.com/best-family-floater-health-insurance-plans-details-checklist-comparison/ https://www.relakhs.com/best-health-insurance-comparison-websites-portals/ https://www.relakhs.com/top-up-health-insurance-plans-super-top-up-india/ 3 - Savings in EPF & FD can be considered as Debt component of your investment portfolio. 4 - Maintain a portion of your FD as an Emergency fund to meet any unforeseen expenses. This fund can be 6 to 12 months of your monthly living expenses. 5 - Retirement goal & kid's education goal, kindly go through below articles and you may come back with you analysis; https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ https://www.relakhs.com/calculate-kids-education-goal-amount/ 6 - Are you comfortable investing in Stocks?

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rajeshedp answered 8 years ago

Thanks Sreekanth for your quick response. For#1 , I'm planning to take ICICI ismart plus (75 lacs basic cover + 75 lacs accidental rider). Is that what you have mentioned ? #2, Yes i'll consider one. #3, OK. Thanks #4, Agree #5, Yes . Thanks #6. I've started last year and focussed on 60% large cap and 40% Mid caps and stay invested for long term.I'm tracking the performance almost like hand and glove. So i feel i can continue this rhythm and take decisions. How about my MF funds selection ? Is that OK or any changes needed. I may stop investing in 2 funds and maintain 5 (for easy tracking) funds after 3 yrs incase situation arises. Thanks again

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Sreekanth Staff answered 8 years ago

Hi,
1 - I meant, you may consider a term plan with basic cover without attaching any rider and take separate PA plan. As most of the term plans do not offer Permanent disability risk cover in their Accident riders.
MF Portfolio:
Canara fund though it is a small cap oriented fund, it has just around 27% allocation to small cap stocks. In case, you would like to have a fund with higher allocation to small cap stocks, you may consider Franklin Smaller companies fund.
Mirae, SBI bluechip , DSP & Franklin tax shield funds are good ones.
If you look at portfolio allocation of Franklin tax shield as of now, it has higher allocation to Large cap stocks. So, if you are planning to trim down your portfolio, you may invest additional sums in Franklin ELSS and ignore SBI bluechip fund. But do note that a Fund's portfolio allocation may change in future depending on market conditions and/or fund's investment strategy.
Read:

Best Equity Funds to invest in 2017-18

Best ELSS Tax saving funds for FY 2017-18

How to select right mutual fund schemes?

MF portfolio overlap analysis tools