What should I do with these old MFs?

Hi, Kindly share more details about your investment horizon and objectives? Any specific reason/strategy for investing in HDFC MF Schemes only?

Dear Sir, The funds mentioned as idle funds in #1 have Franklin and Reliance fund house. The funds mentioned as ongoing SIP in #2 have HDFC funds only. All the funds mentioned in #1 and #2 was done by some local broker only(in 2009) when I just invested as per his recommendation .I did pay attention to those funds until a couple of months ago when I started researching about MFs actively. Now I am following some forums and have been very much impressed with your blog. http://www.relakhs.com/top-15-best-mutual-funds-schemes-2016-sip-lumpsum/ Reading this I am now planning to start SIP in the following funds for the horizon of 10-15 years horizon at least for the building of wealth/child education. BSF Frontline Equity Fund, UTI Equity Fund, Frnaklin India Prima Plus Fund, ICICI Pru Value discover plan, Franklin India smaller companies fund, Tata balanced fund & SBI Bluechip Fund( This one only from other site recommendation). But the above #1 and #2 funds being old funds and not recommended by any websites recently, am confused that what should I do now with those? Should I keep the money parked there for their growth or liquidate them to invest in the above funds as suggested by you. Also requesting you to kindly take a look at the above port folio and advice your recommendation if any.

Hi, Franklin Flexi Cap is a Multi-cap fund and a decent one. You may continue to hold it. Reliance Growth is a Mid-cap fund and I believe that there are better funds in this space. You may redeem the Vision fund, HDFC Growth & HDFC Equity funds too. Most of these are Multi-cap funds and it is not that beneficial to invest in multiple funds which are from the same Fund category. Kindly read: What are Large/Mid/Small-cap funds? Along with Franklin Flexi-cap fund you can consider below funds; BSF Frontline Equity Fund or SBI Blucehip,Franklin India smaller companies fund, & Tata balanced fund. In case if you would like to replace Franklin Flexicap also then you may consider ICICI Pru Value Discovery fund. Read: MF Portfolio overlap analysis tools.

Thank you sir for your direction. Your overlap theory has opened up a new direction for me!! You have given suggestions to all the funds that I own except HDFC top 200 fund. Kindly share your views on the same.

Dear Mr Sreekanth sir, Apart from the above question here are few other things I would like to get your expert advice. 1. According to you what is the portfolio overlap % is acceptable? 2. I am a moderate aggressive investor. So what is the % allocation is recommended in MF portfolio split across Equity,Diversified,Multicap,Mid and Small cap,balanced and Debt? 3. You suggested to redeem few funds above. What is the best way to redeem those? Lumpsum or SWP to invest in somewhere else?

Dear, You may redeem units of HDFC Top 200. 1 - Kindly note that there is no 'thumb rule' as such. If overlap % is say 80% then there is no point in holding two such MF schemes. If % is say 20%, that should be ok. 2 - It is mostly dependent on the investment horizon & investment objectives. 3 - If your investment plan is to redeem and re-invest in other better performing equity funds for long term (say >10 years) then you may consider to invest lump sum. So, it is dependent on your current financial profile, your investment objective, time-frame etc.,  

Thank you sir for your valuable advice.