Dear Sreekanth,
First of all i would like to congratulate you on ReLakhs blog that is helping millions of users like me in financial planning. I am a regular follower of your blog.
I would like your valubale advise on my portfolio described below:
I have an active SIP of Rs 40,000 per month in the following funds:
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ELSS
DSP BR Tax saver: Rs 5000
Birla Sl Tax relief 96 : Rs 2000
Large Cap:
Birla Sl Top 100: Rs 8,000
Multicap
Birla SL Equity fund: Rs 10,000
Motilal Oswal MOST focused 35: Rs 7,000
Mid cap:
Mirae emerging bluechip: Rs 4000
HDFC mid cap opportunities: Rs 2000
Small cap:
Reliance small cap: Rs 2000
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I am somewhat confused with this portfolio. Need advise on asset allocation on this portfolio.
1. In the ELSS category shall i go for DSP tax saver or Franklin Tax shield? or shall entire allocation be in ABSL tax 96 considering risk/volatility it involves? and investment in ELSS shall be lumpsum or SIP?
2. Shall i continue with large cap or move this amount to Multicap fund?
3. In the multicap space, which Multicap fund shall i chose for long term considering BSL equity and MoST 35 being very volatile? Shall i go for more stable funds like Franklin India prima plus/Franklin high growth companies fund? or may be some other fund that you suggest or is the current selection ok?
4. Also in mid cap space, is the allocation in funds correct? or shall i switch to some other long term stable fund? or entire allocation in just one fund?
5. Again in small cap space Shall i continue with Rel small cap or switch to Franklin India smaller companies fund?
Also please let me know the amount to be invested in each of these fund across categories.
I also have around 2 lacs in FDs that i dont require in next 5 years. Shall i move this money to Debt fund or some other fund ,If yes, then in which fund?
Also do i need to setup an STP for above mentioned Rs 40,000 Equity SIP (If yes, then from which fund ?)
Thank you very much once again.
Siddharth
4 Answers
Best Answer
Dear Siddharth,
All the above listed funds are good ones.
You may continue with your investments.
Along with equity funds, kindly do invest certain portion of your investible surplus in debt products like debt mutual funds, PPF/EPF, etc., Try to maintain a good Asset allocation.
May I know your investment horizon for these investments?
Related articles :
Kindly check portfolio overlap among the funds from multicap & ELSS ..
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
https://www.relakhs.com/200-day-moving-average-dma-mutual-funds/
https://www.relakhs.com/top-5-best-elss-mutual-fund-schemes/
Dear Sreekanth,
Thanks for your prompt reply.
I would like to mention that i had few lakhs invested in PPF.
My investment horizon for equity SIP is 15-17 years.
Considering 15 years a long term, i had requested you to review my portfolio and relevant queries as mentioned above and also the asset allocation details including amount to be invested in each of the funds respectively for 15-17 years.
Please have a look at my current asset allocation and guide accordingly.
Looking for your valuable suggestions.
Thank you very much once again!
Hi,
Considering your investment time-frame, you may increase allocation of SIP amount to mid/small cap funds.
Suggest you to kindly consult a Fee-only financial planner who can assist in the allocation of exact amounts after discussing your financial goals and objectives in detail.
Hi,
My reply to your 'pvt' question...
I used to offer Fee only one to one Financial Planning services, but not now!
For suggestions on 'fee only planners', you may kindly reach me through the 'Contact us' page..
Thank you very much!
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