My New Mutual Fund Portfolio | My Equity MF Investments

View Comments

• Hello Sree,

  Hope you had a great start to 2022.

  I want to invest 15 lakhs, this is money I do not need for long term so want to use it for wealth accumulation. I was thinking of parking these funds in Parag Parik Flexicap & UTI Nifty (50-50). I am confused about making a lump-sum investment or transferring in instalments. Was wondering what would you do if you were me.

  Looking forward to your advise, thank you so much!

  Best,
  Ksam

• Dear Sreekanth

  Thank you for your valuable posts. I read them regularly and now have a financial goal with time frame. Earlier I used to invest in lot of funds with no direction.

  My query is about the Debt component. Apart from PPF, can I continue investing in Liquid and Arbitrage Funds. My goal is 10 to 12 years away for retirement.

  I am investing in Parag Flexi Cap and UTI Nifty Next Index apart from HDFC Hybrid for equity.

  I plan to rebalance them with Parag Liquid and UTI Arbitrage which will form debt component of my portfolio apart from PPF.

  Your advice in this will be helpful.

  Thanks

  Vikas Vyas

  PS: I still wonder for your long terms goal why you shifted to only Bank FDs. Of course Capital protection will be running high in your mind but do you feel even Liquid / Arbitrage funds could erode capital for long term say 10 years plus? Just trying to understand the core belief behind your decision to make my decision :)

  • Dear Vikas,
    Thank you for following my blog posts!
    May I know your Debt to Equity allocation ratio? Do you contribute to the EPF/NPS Scheme?

    My Debt portfolio:
    Kindly note that Banks FDs are part of my Emergency Fund & Crash Fund and not for long-term goal.

    • Dear Sreekanth

      Thank you for your response.

      My original allocation Equity to Debt was 60 : 40. Now it is 70 : 30 and I want to re-balance back to original asap.

      No I do not contribute to EPF / NPS. I am self employed and my debt component is PPF where I try to max out 1.5 lacs each year. I have 2 other debt funds too but I want to revise strategy to try and invest in lowest risk possible. So while I will take more risk in Equity investments, I do not want to lose sleep where I am investing in Debt Funds and not bother about returns.

      After painstaking churning of portfolio and finally finding some direction, here is my current portfolio. I now want to keep it as simple as possible.

      Equity 60% of total portfolio

      HDFC Hybrid / Mirae Hybrid (40% )
      PPFAS Flexi (40%)
      UTI Nifty Nxt 50 (20%)

      Debt 40% of total portfolio

      PPF (Main component as of now)
      HDFC Short Term
      Franklin India Savings (money market)

      Now I want to add UTI Arbritrage and Parag Liquid, just add little to HDFC Short Term debt and phase out Franklin Savings. To compensate of investing in these very low risk funds therby poor returns, i will try to invest more in PPFAS Flexi and UTI Nifty Nxt 50 than Hybrid funds

      Your thoughts on this please.

      What is your long term debt component of the portfolio please?

      Thanks

      Vikas

      • Dear Vikas,
        Good strategy wrt Debt allocation!
        You may kindly go ahead add UTI Arbitrage and Parag Liquid to your debt allocation.

        I do not invest in any Debt options. I maintain a very high corpus towards Emergency fund and Crash Fund.
        I have equity allocation to Equity MF and Direct Stocks. My Equity MF is for long term goals.

        • Dear Sreekanth.

          Thank you, that is reassuring! I will go ahead.

          I assume you are several years away from retirement. Out of interest may I know your Equity to Debt allocation please.

          Still curious about your strategy. As whatever and where I have read, all seems to be suggesting that only for immediate needs and emergency, one should invest in FDs. FDs not only have very poor return but also eats up due to taxation. My guess is apart from Bank FDs, you may be having NPS or EPF for the debt component.

          Whereas in Liquid funds you get benefit of indexation and you are charged only when you redeem. So my guess is you are contributing more in Hybrid equity to maintain stability.

          I have already got my answer and I am going to go ahead, but just asking for my knowledge.

          Thanks again

          Vikas Vyas

        • Dear Vikas,
          Due to certain personal life priorities I save in FDs and no other debt investments.
          I invest almost 90% of my disposable income in Equity MFs. The remaining 10%, I keep it either as addition to Emergency Fund or Crash Fund.

        • Dear Sreekanth

          Thank you so much for the insights.

          Finally after brainstorming of selection of funds in Debt for the past week, I will go ahead with the re-balancing back to 60E to 40D.

          My best wishes. I appreciate you provide your knowledge to many readers like me.

          Vikas

        • All the very best dear Vikas!
          Keep visiting ReLakhs and kindly do share the articles with your friends! Thank you!

• Hi Sreekanth,
  Need advice- yet again :)

  Please suggest one/multiple MFs to invest in.
  Goal: daughter's education, safe fund.
  Time frame: education- 15 years. Safe Fund- 15 years.
  Financial goal: education- 1 cr. Safe Fund- 1 cr.
  Risk capacity: medium.

  Thanks a lot
  Gaurav

  • Dear Gaurav,
    May I know what do you refer by 'safe fund'??

    Related article :
    Kid's Education goal planning - calculator

    • Hi Sreekanth,
      By safe I mean fund set aside just for her use. Kind of saving in a way

      • Dear Gaurav,
        Can consider a combination of PPF + Equity Hybrid Fund + Large cap index based fund for the mentioned goal.

• hi Srikanth-

  I really appreciate your blogs and started my investment journey in a methodical way by reading them a couple of years ago.

  when do you plan to come up with your recommendations for MF investments in 2021.

  • Dear Raj,
    Thank you for following my blog posts!
    Will try to publish by End of this month!

• Hi Srikanth,
  I would appreciate if you give your views on international diversification in equity mutual funds (say around 25% of total, or 1 fund, if I have total 4 funds). Not for enhancing returns, but for reducing risk, as other markets have at least some negative correlation to ours.

• Dear Srikant, I am 56 years old with decent earning each month. I got the return from SBI Dual Advantage Fund - Series XXIV - Regular which i want to reinvest around 10 lakhs amount.
  my two SIPS period was FOR 3 years are getting over in November whcih are FRANKLIN SMALLER COMPANIES FUND DIVIDEND & ADITYA MID CAP FUND PLAN DIVIDEND REGULAR PLAN. 8 LAKHS, AND 4 LAKHS,
  BESIDE THIS MY FIXED DEPOSIT AROUND 6 LAKHS IS ALSO DUE IN NOVEMBER.

  I WANT YOU TO SUGGEST ME FOR REINVESTMENT OF AROUND 28 TO 30 LAKHS.

  PLEASE SUGGEST GOOD FUNDS
  . MY GOAL IS FOR 3 TO 5 YEARS GOOD ASSURED RETURN.

• Hi Sreekanth Garu,

  Thanks for the noble work you are doing by sharing your knowledge. I would like your inputs on my below questions.

  I plan to save for my children's education. I have done the goal setting and asset allocation. I want to invest in 2 mutual funds for the equity part. I have chosen Hybrid Aggressive as one category for both of the kid's portfolio. (15 and 18 years investment horizon for both kids respectively.)

  I have listed the following funds:
  Canara Robeco Equity Hybrid
  SBI Equity Hybrid.

  HDFC hybrid equity and ICICI debt equity seem to be performing poorly recently?

  What is your opinion on this?
  Also, I have observed that Canara hybrid fund is not listed in Most of the top performing lists, even though it appears to have consistent performance and better risk ratios.

• Hi Srikanth,
  I am having 10 years old daughter. I am planning to open SSY on her name ( not for tax purpose) I have to wait for 11 more years to withdraw accumulated amount.
  Instead if I invest same amount in MF i may get more returns for her marriage as I have more than 11 years for my investment. please advice.
  Refer good MF for my child for her marriage after 15 years. My age is 48 years. I am moderate to aggressive investor. I have own house & other assets to meet debt portion.

  • Dear Harinath,
    Ideally, mutual funds and a product like SSA should not be compared.
    If you are willing to take risk then can consider investing in mutual funds.

    Read :
    * Calculate how much you need to invest for your Kid’s Education
    * List of all Popular Investment Options in India – Features & Snapshot

• Hi Sir,

  My age is 38 and below is my portfolio:

  Equity ( I have SIPs running):
  Motilal Oswal Multicap 35 Dir Gr
  Canara Robeco Emerging Equities Dir Gr
  ICICI Pru Equity & Debt Gr
  ICICI Pru Savings Dir Gr
  ICICI Pru Value Discovery Gr
  SBI Bluechip Reg Gr
  HDFC Mid-Cap Opportunities Dir Gr
  HDFC Hybrid Eq Dir Gr

  Debt ( No SIPs):
  HDFC S/T Debt Dir Gr
  SBI Magnum Gilt Fund Direct Growth
  ICICI Prudential Corporate Bond Fund Direct Plan Growth
  Nippon India Banking & PSU Debt Fund Direct Growth
  Axis Treasury Advantage Dir Gr

  My Investment horizon is 5-10 years. Can you please review my portfolio and advice. Thanks in advance.

  • Dear Sudhi,
    May I know your investment objective?
    What is your investment strategy wrt Debt fund picks?

    • Sreekanth,

      My investment strategy is long term capital appreciation and the debt fund is just for adjustment. Debt funds can be used to put money in equity when the market is low plus a little bit of appreciation. Although I have FD's and RD's for an emergency. Thank You.

      • Dear Sudhi,
        You may have a re-look at ICICI Pru Value Discovery Gr fund.

        Suggest you to also check fund overlap among the equity funds.
        Hope you are aware of the risks associated with the Debt funds and they can also give NEGATIVE returns.

        • Thanks a lot.
          Questions:
          1) Can I keep the ICICI Pru Value Discovery Gr fund and remove SBI blue chip?
          2) Shall I add ICICI balanced advantage instead of ICICI equity and Debt fund?
          Thanks, I will move debt funds to liquid or ultra short term. Or may keep for 3 or more years to reduce risk.

        • Dear Sudhindra,
          1 - You can have a look at large cap index funds instead of active large cap funds like SBI bluechip. Based on its performance plus your existing portfolio, I have given suggestion on Discovery fund.
          2 - Are you expecting higher returns from a fund like ICICI Equity and Debt?

        • Thank a lot.
          1) I have already started investing in Nifty 50 ETF will stop SBI blue chip.
          2) No much expectation from Hybrid ( You already know :)). In fact, I am thinking to move to ICICI balanced advantage fund. What are your thoughts on the same?
          3) The debt funds I won't remove within 3 years for sure. I have clearly had goals set on that and studied credit risk and other things.
          4) I will continue Canara and Motilal 35.

          Thanks a lot for your guidance.

        • Dear Sudhindra,
          1 - Ok.
          2 - But why ICICI balanced advantage fund? (Reason for picking this fund)
          3 - Ok

        • Thanks a lot. Can I keep the ICICI Pru Value Discovery Gr fund and remove SBI blue chip? Shall I add ICICI balanced advantage instead of ICICI equity and Debt fund? Thanks, I will move debt funds to liquid of ultra short term.

        • Dear Sudhindra,
          You may move out of Discovery fund and retain ICICI E&D.
          Kindly note that liquid and Ultra short term also fall under Debt fund categories..

        • Thank you.
          I saw your blog and was impressed so I thought to review my portfolio. As I told you I have a long term horizon (minimum 10 years).

          Answer for your questions ( and counter questions too :))

          1) I need a debt fund and manage it quite well :).
          2) Of late (a year or so) ICICI E&D is not performing well so I was a bit concerned.
          3) Do you want me to keep SBI blue seeing it’s underperformance?
          4) On which basis you are ruling out the Discovery fund?

          Let me know your thoughts. Please reply to my below equity funds.

          Motilal Oswal Multicap 35 Dir Gr
          Canara Robeco Emerging Equities Dir Gr
          ICICI Pru Value Discovery Gr
          SBI Bluechip Reg Gr
          HDFC Mid-Cap Opportunities Dir Gr
          HDFC Hybrid Eq Dir Gr
          ICICI Pru Equity & Debt Gr

          In the short term, I have debt and arbitrage funds.

        • Thank you. Ya, I need a debt fund for rebalancing during a volatile time in the market :). Of late (a year or so) ICICI E&D is not performing well so I was a bit concerned. Do you want me to keep SBI blue seeing it's under performance?

• Hello Sreekanth,

  Good afternoon!

  Trust all well with you .

  Needed your guidance as I am rebalancing my portfolio.

  1.Franklin India smaller companies fund has been underperforming for quite long ,hence intend to discontinue the same and keep the units balance or should I give it some more time. The same goes for Franklin India Taxshield ,the other reason also being that tax requirements are being met through PPF and my daughter's school fees.If the call is to discontinue these 2 funds then should I divert the ongoing sips towards other ongoing fund sips or lumpsum investment or PPF or anything else you suggest.
  2.)Want to invest a lumpsum of 50 k (emergency fund) in a liquid fund or bank fd.As of now emergency fund of 50 k each parked in Sbi magnum short term fund/Quantum liquid fund and Franklin India ultra short bond fund.

  Please advise.

  Best regards,
  Roy

  • Dear Mr Roy,
    Suggest you to route future SIPs of these funds to other existing MF schemes.
    You can redeem units of Franklin Smaller companies unit and switch to your existing funds. Kindly be aware of the exit load or any tax implications.

    Suggest you to primarily opt for Bank FDs for Emergency fund purposes.
    You may also max out on PPF contribution (Rs 1.5 lakh per FY).

    Related articles :
    * What is an Emergency Fund? | Why, Where & How much to save?

    * Tax Saving investment options u/s 80c : In whose name can they be invested?

    • Thank you Sreekanth.

      Will discontinue with Franklin Smaller and Franklin taxshield.Full redemption of Franklin smaller and partial redemption of Franklin Taxshield would fetch me approx 5 lacs at current nav's.

      Post this I would be left with 6 funds with ongoing monthly sips i.e.

      ICICI Pru Bluechip fund -9k pm
      ICICI Pru Value discovery-2 k pm
      Hdfc hybrid equity-9 k pm
      Hdfc midcap opportunities -12k pm
      Franklin India equity fund-9k pm
      Franklin India focussed equity-6k pm

      Plan to allocate the redeemed 5 lacs as follows:
      PPF-1 lac
      SSA-1 lac
      Bank FD-1 lac
      Liquid fund-1 lac
      HDFC hybrid-50 k
      ICICI Pru bluechip-50 k

      Plan to re allocate discountinued sips of Franklin funds of 16 k pm to existing fund sips :
      ICICI Pru Bluechip -6k pm
      HDFC Midcap -3k pm
      HDFC hybrid-7k pm

      Please suggest any changes to above plan.Please note that above plan is keeping in mind goals to be achieved in terms of daughter's post graduation,marriage and retirement i.e.long term goals.

      Regards,
      Roy

      • Dear Roy,
        You may have a re-look at ICICI Discovery fund as well.
        Rest of the funds look fine.

        Plz Read : What is an Uncorrelated Investment Portfolio? | Importance of Non-correlated Assets in Portfolio Diversification

        • Right Sreekanth.Do rest of the sip/lumpsum allocations look fine as well?

        • Dear Roy,
          Its fine.
          Proper Asset allocation & re-balancing need to be done periodically.

          Related article : What is an Uncorrelated Investment Portfolio? | Importance of Non-correlated Assets in Portfolio Diversification

        • Very true Sreekanth.

          Have a nice evening and a awesome weekend.Cheers!!

          Regards,
          Roy