How to restructure my mutual fund portfolio?

Q & A Forum › Category: Investments › How to restructure my mutual fund portfolio?

vaskar basak asked 8 years ago

Hello, I am a 36-year-old working professional. I have been investing Rs 500 in HDFC Balanced Fund, Rs 500 each in HDFC Prudence Fund-Growth,500 Franklin India High Growth Companies Fund and Franklin India Prima Plus since 2016. Is my portfolio good? I want to invest Rs 4,500 extra in mutual funds. Can I increase the amount in my current portfolio? My horizon is 20 to 25 years, with medium risk. Thanks, Vaskar

2 Answers

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Sreekanth Staff answered 8 years ago

Hi, The listed 4 funds are good ones. However, two of them are balanced funds and two are multi-cap oriented fund. Considering your investment time-frame, you may continue with one balanced fund (HDFC Bal fund) and one Mutl-cap (can be Franklin High Growth Fund). You may add one Mid-cap oriented fund to your portfolio. Ex : HDFC Mid-cap opp fund / Mirae Emerging bluechip etc., Kindly read : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/

vaskar basak replied 8 years ago

Hello,Should i sell HDFC Prudence Fund-Growth & Franklin India Prima Plus & continue the HDFC Bal fund & Franklin India High Growth Companies Fund.I want to create assets worth Rs 50 Lakh after 18 years. I am 36 years old with moderate risk . Where and how much should I invest to achieve my goal?

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Sreekanth Staff answered 8 years ago

Hi, After the re-classification exercise, HDFC balanced fund remains almost the same. It will still be an aggressive Equity hybrid fund. Whereas, there are lot of changes being implemented for HDFC prudence fund, be it investment objective, strategy, portfolio allocation, fund type etc., The fund can now invest 0 to 100 % in equities or 0 to 100% in Debt securities. Hence, you may stick to HDFC balanced fund and can come out of HDFC Prudence fund. Kindly go through the changes in fundamental attributes. Also read : https://www.relakhs.com/mutual-funds-capital-gains-taxation-rules-fy-2018-19/ Similarly, go through the changes for Franklin funds and then take appropriate decision.