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Diwali bonanza for mutual fund investors: 3 experts build 3 model portfolios

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CNBC-TV18 presents model portfolios designed by Feroze Azeez, deputy CEO of Anand Rathi Financial Services, Manoj Nagpal, founder of Outlook Asia Capital and consulting editor with Moneycontrol, and Kaustubh Belapurkar, director of fund research at Morningstar India.

Diwali bonanza for mutual fund investors: 3 experts build 3 model portfolios
Since last Diwali, the mutual fund industry and its investors have gone through a lot of heartache. The crisis that began with Infrastructure Leasing & Financial Services (IL&FS) exactly a year ago took shape with DHFL and Altico. And let's not forget the Essel Group and it's part in souring sentiment the last one year. But, by most accounts, it looks like the worst may be over, however, full recovery could still be a while away.
Last year, at this time, the mutual fund industry stood at the cusp of crossing the Rs 25 lakh crore assets base mark and one year later, the industry waits to decisively take the next step.
What's heartening though is that the Association Of Mutual Funds or AMFI released a vision document a few weeks ago that targeted an opportunity size of Rs 100 lakh crore over the next ten years and a five-time increase in investor base from Rs 2 crore to Rs 10 crore over the next decade.
Retail investors though have held on. Systematic Investment Plan (SIPs) continue to show stability and this is where hope floats. As the industry makes its way into B30 and beyond, it is these retail investors who hold the key to the industry's expansion and their own wealth creation.
It is exactly these retail investor for whom three top mutual fund experts have curated model portfolios this Diwali. That's not all — we are brining in an element of accountability by promising to compare the performance of the recommended portfolios next Diwali and every Diwali hereafter.
Here are the model portfolios designed by Feroze Azeez, deputy CEO of Anand Rathi Financial Services, Manoj Nagpal, founder of Outlook Asia Capital and consulting editor with Moneycontrol, and Kaustubh Belapurkar, director of fund research at Morningstar India.
 
Feroze Azeez, deputy CEO, Anand Rathi Financial Services
Feroze's model portfolio
Key parameters
- Allocation to each fund maintained between 8 and 15 percent
- Roughly 3 percent standard deviation from average fund allocation for an eight-fund portfolio
- Fund allocations constructed to have the most efficient risk-adjusted return
- Model portfolio has 62 percent allocation to large cap and 38 percent to mid and small caps
 
Feroze's model portfolio
Portfolio constituents
- Nippon India Large Cap Fund
- Category: Large cap
- Portfolio allocation: 15 percent
 
Feroze's model portfolio
Portfolio Constituents
- Mirae Asset Large Cap Fund
- Category: Large cap
- Portfolio allocation: 15 percent
 
Feroze's model portfolio
Portfolio Constituents
- Kotak Standard Multi Cap Fund
- Category: Multi Cap
- Portfolio allocation: 15 percent
 
Feroze's model portfolio
Portfolio Constituents
- Invesco India Growth Opp Fund
- Category: Large and midcap
- Portfolio allocation: 15 percent
 
Feroze's model portfolio
Portfolio Constituents
- Canara Robeco Emerging Eq Fund
- Category: Large and midcap
- Portfolio allocation: 8 percent
 
Feroze's model portfolio
Portfolio Constituents
- Kotak Emerging Equity Fund
- Category: Midcap
- Portfolio allocation: 8 percent
 
Feroze's model portfolio
Portfolio Constituents
- L&T Midcap Fund
- Category: Midcap
- Portfolio allocation: 9 percent
 
Feroze's model portfolio
Portfolio Constituents
- SBI Focused Equity Fund
- Category: Focused
- Portfolio allocation: 15 percent
 
Feroze's debt portfolio
Portfolio Constituents
- ICICI Pru Medium Term Bond Fund
- Portfolio allocation: 17 percent
 
Feroze's debt portfolio
Portfolio Constituents
- Kotak Medium Term Fund
- Portfolio allocation: 17 percent
 
Feroze's debt portfolio
Portfolio Constituents
- Franklin India Dynamic Accrual Fund
- Portfolio allocation: 16 percent
 
Feroze's debt portfolio
Portfolio Constituents
- HDFC Credit Risk Debt Fund
- Portfolio allocation: 17 percent
 
Feroze's debt portfolio
Portfolio Constituents
- Franklin India Income Opp Fund
- Portfolio allocation: 16 percent
 
Feroze's debt portfolio
Portfolio Constituents
- ABSL Credit Risk Fund
- Portfolio allocation: 17 percent
 
Manoj Nagpal, founder, Outlook Asia Capital
Manoj's model portfolio
Key Parameters
- Investor profile: Married
- Age: 30-40 years
- Moderate Risk taker
 
Manoj's model portfolio
Portfolio Constituents
- MoSL Focussed 25/SBI Nifty ETF
- Large cap focus/Index fund
- Portfolio allocation: 10 percent
 
Manoj's model portfolio
Portfolio constituents
- Kotak Standard Multicap Fund
- Category: Multicap
- Portfolio allocation: 16 percent
 
Manoj's model portfolio
Portfolio constituents
- DSP Midcap Fund
- Category: Mid/Small cap
- Portfolio allocation: 12 percent
 
Manoj's model portfolio
Portfolio constituents
- Mirae Focus/IDFC Infra Fund
- Category: Thematic/Focus
- Portfolio allocation: 15 percent
 
Manoj's model portfolio
Portfolio constituents
- ICICI Pru Long Term Equity Fund
- Category: Tax saving
- Portfolio allocation: 7 percent
 
Manoj's model portfolio
Portfolio constituents
- Frankllin US Opportunities Fund
- Category: International
- Portfolio allocation: 10%
 
Manoj's model portfolio
Portfolio constituents
- IDFC Low Duration Fund
- Portfolio allocation: 5 percent
 
Manoj's model portfolio
Portfolio constituents
- Franklin Ultra Short Bond Fund
- Category: Short-Term Goals
- Portfolio allocation: 10 percent
 
Manoj's model portfolio
Portfolio constituents
- SBI Dynamic Bond Fund
- Category: Debt Funds
- Portfolio allocation: 5 percent
 
Manoj's model portfolio
Portfolio constituents
- PPF/Bank FDs
- Category: Small savings
- Portfolio allocation: 5 percent
 
Manoj's model portfolio
Portfolio constituents
- Sovereign Gold Bond Funds
- Category: Gold
- Portfolio allocation: 5 percent
 
Kaustubh Belapurkar, director-fund research, Morningstar India
Kaustabh's model portfolio
Key Paramaters
- Purpose: Growth
- Invst horizon: 10+ years
- Risk tolerance: High
 
Kaustabh's model portfolio
Asset Allocation
- Indian equity: 75 percent
- Global equity: 10 percent
- Indian fixed income: 15 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- HDFC Top 100 Fund
- Category: Large cap equity
- Portfolio allocation: 15 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- Mirae Asset Large Cap Fund
- Category: Large cap equity
- Portfolio allocation: 15 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- Aditya Birla Sun Life Frontline Equity
- Category: Large cap equity
- Portfolio allocation: 15 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- Franklin India Prima Fund
- Category: Midcap equity
- Portfolio allocation: 10 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- DSP Midcap Fund
- Category: Midcap equity
- Portfolio allocation: 10 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- ICICI Prudential Value Discovery Fund
- Category: Equity value
- Portfolio allocation: 10 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- ICICI Prudential US Bluechip Equity
- Category: US equity
- Portfolio allocation: 10 percent
 
Kaustabh's model portfolio
Portfolio Constituents
- HDFC Short-Term Debt Fund
- Category: Short duration
- Portfolio allocation: 15 percent

Market Movers

CompanyPriceChng%Chng
Bharti Airtel567.90 27.35 5.06
Tata Steel1,365.00 34.35 2.58
SBI Life Insura1,133.40 28.25 2.56
Divis Labs4,890.60 99.20 2.07
IndusInd Bank992.75 16.95 1.74
CompanyPriceChng%Chng
Bharti Airtel567.90 27.45 5.08
Tata Steel1,365.15 34.65 2.60
IndusInd Bank992.30 16.65 1.71
Bajaj Finserv13,985.70 184.50 1.34
ICICI Bank685.30 7.65 1.13
CompanyPriceChng%Chng
Bharti Airtel567.90 27.35 5.06
Tata Steel1,365.00 34.35 2.58
SBI Life Insura1,133.40 28.25 2.56
Divis Labs4,890.60 99.20 2.07
IndusInd Bank992.75 16.95 1.74
CompanyPriceChng%Chng
Bharti Airtel567.90 27.45 5.08
Tata Steel1,365.15 34.65 2.60
IndusInd Bank992.30 16.65 1.71
Bajaj Finserv13,985.70 184.50 1.34
ICICI Bank685.30 7.65 1.13

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.3750-0.0850-0.11
Euro-Rupee87.7780-0.2340-0.27
Pound-Rupee103.1560-0.2030-0.20
Rupee-100 Yen0.6763-0.0019-0.28