Revisiting Porfolio - Q & A Forum

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[email protected] asked 9 years ago

Hi Sreekanth I am regular reader of your blog. Keep up your good work. I started investing in mutual funds based only after reading articles from you :) Please review my portfolio - I am 28 yr old. Monthly income - 1L Long Term Wealth creation - ( 10 - 15yrs + retirement ) : Started investing Feb/Mar 2016

Axis Long Term Equity G
Franklin India Prima Plus G
Tata Balanced Fund G

Short - Medium Term - For any intermediate fund (3-5 yrs)

Franklin India Low Duration Fund
Birla MIP - || - Wealth 25

Emergency fund - Savings + FD - 3 L Remaining Saving account - 5L (Not sure where to invest) I have a home loan EMI running at 8.2% - 38 K EMI for 11 more years. (So from now I will not need the ELSS as such for few years) I am a moderate risk taker. Couple of questions -

The funds mentioned under long term wealth creation - I picked them based on ratings and suggestions in blogs - I have paused my investment in these for now - because the rating and current performance based on past couple of quarters doesn't look all that great. Do you agree ? Or should just continue with these funds? (Market also looks over valued at this point) Or would you suggest any other funds to replace.
Where should I invest the remaining 5L (I do not need them immediately) - In any debt fund or continue to invest in the equity funds ?

4 Answers

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Sreekanth Staff answered 9 years ago

Hi, Thank you for being a loyal reader! I believe that the funds Axis LTE & Franklin Prima plus can be continued but I do agree with the no so great performance of TATA balanced fund, its Fund manager has been changed and we need to keep a track of its performance over then next 1-2 years. Kindly note that, no fund can remain as a top performer in their respective categories forever, we need to see if it is consistently performing well or not over last many years, across different market cycles. Also, we need to see its performance Vs benchmark Vs its category avg over long term. Rs 5 Lakh ? - May I know your expected investment horizon?

[email protected] replied 9 years ago

Thank you for the prompt response. Point taken, I shall continue with Axis LTE and Franklin prima plus. Any suggestions on any other fund instead of Tata balanced fund which I can use for fresh investments. Current amount in tata can stay as is and I can monitor for performace again after few months.
For the 5 L – I can mark it for 10 – 15 yr category.
Does the rest of my portfolio look fine ?

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Sreekanth Staff answered 9 years ago

Hi, Debt funds are fine. Hope you are aware of the new changes in Birla MIP fund portfolio. Kindly read : https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/ Are you aware of Arbitrage Funds? A portion of emergency fund can be invested in these, if required. Kindly read : https://www.relakhs.com/emergency-fund-importance/ https://www.relakhs.com/best-arbitrage-funds-returns/

[email protected] replied 9 years ago

Yes, I got the notification on the new change with MIP fund. I understand it is slightly more riskier than it used be earlier.
Thank you, I shall go through about arbitrage fund.

Please suggest alternative for Tata balanced and suggestion on how to use my 5L for 10-15 yr category.

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Sreekanth Staff answered 9 years ago

Hi, In case, you dont need ELSS funds for tax saving any more, you may allocate more funds to regular diversified fund ie Franklin Prima plus. You may pick HDFC balanced fund in place of TATA balanced fund. You may add one mid-cap oriented fund to your portfolio. Ex : Mirae Emerging bluechip fund or HDFC Mid-cap opp fund etc., You may set up STP for your 5Lakh investment from couple of liquid funds to respective AMCs' equity funds. Ex : HDFC liquid fund to HDFC Balanced fund. Suggested readings : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/200-day-moving-average-dma-mutual-funds/

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[email protected] answered 9 years ago

Thank you :)