Mutual Fund Corner: Is My Mutual Fund Portfolio Good?

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Mutual Fund Corner: Is my mutual fund portfolio good?

By CNBC-TV18 | Nov 22, 2018, 04:30 PM IST (Published)

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Want to invest in mutual funds but don’t know how to go about it? Get all your mutual fund related queries answered by our expert, Himanshu Srivastava, senior research analyst, Morningstar Advisers India, on our show Mutual Fund Corner.

Mutual Fund Corner: Is my mutual fund portfolio good?

Want to invest in mutual funds but don’t know how to go about it?

Get all your mutual fund related queries answered by our expert, Himanshu Srivastava, senior research analyst, Morningstar Advisers India, on our show Mutual Fund Corner.

Q: 30-year-old Harsha Vardhan writes to us from Hyderabad. I would request to review my portfolio on Mutual Fund Corner and suggest if this portfolio is good from a 10 - 15 years perspective. Below are the funds in which I invest Rs 3,000 per month in each of them since an year. Also suggest if I need to modify this a bit.

Axis Long Term Equity - Direct(G)

Kotak Select Focus Fund - Direct(G)

Motilal Oswal Focussed 35 - Direct(G)

Tata India Tax Savings Fund - Direct(G)

L&T Emerging Businesses Fund - Direct(G)

Mirae Asset Emerging Bluechip Fund - Direct(G)

A: Let me give you a synopsis of your portfolio.

I can see you have invested in direct plans, which means most likely you have selected the funds on your own without the help of a professional advisor.

Frankly it’s a slightly lopsided portfolio. It misses some of the basic mutual fund categories which any portfolio must have. For example, you don’t have either large cap fund or a midcap fund in your portfolio.

I believe you might not have undertaken an asset allocation exercise as well.

So first you need to plan and streamline your investment.

For an investment horizon of 15 years and considering you have a moderate risk appetite, you can have an asset allocation of 60-65 percent in equities and balance in fixed income.

For the equity portion you should have a mix of large, mid and small cap funds with a higher allocation to large caps which can be around 60 percent of the equity portfolio.

Some of the large cap, mid cap and small cap funds which you can consider investing are:

Group/Investment	Morningstar Analyst Rating	Morningstar Rating Overall	Returns (%)
Group/Investment	Morningstar Analyst Rating	Morningstar Rating Overall	1-Yr	3-Yr	5-Yr
Large-Cap
Aditya BSL Frontline Equity Gr	Silver	ÙÙÙÙ	-4.61	8.90	14.26
DSP Top 100 Equity Reg Gr	Bronze	ÙÙ	-8.34	6.22	10.34
Franklin India Bluechip Gr	Gold	ÙÙÙ	-5.35	6.81	12.05
HDFC Top 100 Gr	Gold	ÙÙÙÙ	-1.57	11.19	14.81
ICICI Pru Bluechip Gr	Silver	ÙÙÙÙÙ	-1.06	10.96	14.34
Reliance Large Cap Gr	Silver	ÙÙÙÙÙ	0.49	10.90	17.58
SBI Bluechip Reg Gr	Bronze	ÙÙÙÙ	-5.24	7.93	15.24
UTI Mastershare Unit Reg Gr	Bronze	ÙÙÙ	-0.62	8.04	13.03
Mid-Cap
Aditya BSL Mid Cap Gr	Bronze	ÙÙÙ	-14.80	7.93	20.32
DSP Midcap Reg Gr	Silver	ÙÙÙÙ	-10.35	10.95	22.32
Franklin India Prima Gr	Gold	ÙÙÙÙ	-7.18	9.75	21.74
HDFC Mid-Cap Opportunities Gr	Gold	ÙÙÙÙÙ	-8.71	11.08	22.91
ICICI Pru Midcap Gr	Bronze	ÙÙÙ	-10.23	9.45	23.43
SBI Magnum Midcap Reg Gr	Bronze	ÙÙ	-15.37	4.15	20.03
Sundaram Mid Cap Gr	Bronze	ÙÙÙ	-13.79	8.50	22.03
Small-Cap
DSP Small Cap Reg Gr	Silver	ÙÙÙÙ	-18.82	7.33	26.72
Franklin India Smaller Companies Gr	Silver	ÙÙÙÙ	-14.26	8.79	23.57
HDFC Small Cap Gr	Bronze	ÙÙÙÙ	0.42	16.66	20.74

You have invested in Motilal Oswal Focused 25 Fund. This fund is a part of focused category. The style with which these funds are managed is aggressive in nature. In this fund, the manager cannot invest in more than 25 stock, which means the fund tends to have a concentrated portfolio. If you have the requisite risk appetite required to invest in such strategies, you can continue. Else, you can consider diverting the SIP from here to another more suited offering.

On the fixed income side, you can consider having funds from the ultrashort, low duration and short-term category.

The funds which you can consider here are:

`	Morningstar Analyst Rating	Morningstar Rating Overall	Returns (%)
`	Morningstar Analyst Rating	Morningstar Rating Overall	6-Mth	1-Yr	3-Yr
Low Duration
Franklin India Low Duration Gr	Silver	ÙÙÙÙÙ	3.87	7.06	8.57
ICICI Pru Savings Gr	Silver	ÙÙÙÙÙ	3.52	6.38	7.69
Reliance Low Duration Gr	Bronze	ÙÙÙÙÙ	3.49	6.37	7.33
Reliance Low Duration Retl Gr	Bronze	ÙÙÙÙ	3.24	5.88	6.86
Ultra Short Duration
Franklin India US/T Bd Retl Gr	Gold	ÙÙÙÙÙ	3.83	7.17	8.14
Kotak Savings Fund Reg Gr	Bronze	ÙÙÙÙ	3.51	6.59	7.30
Short Duration
Franklin India S/T Income Gr	Silver	ÙÙÙÙÙ	3.49	5.98	7.89
ICICI Pru Short Term Gr	Bronze	ÙÙÙÙÙ	2.69	4.03	7.19
Kotak Bond S/T Reg Gr	Bronze	ÙÙÙÙ	2.81	4.26	6.67
Reliance Short Term Gr	Bronze	ÙÙÙÙ	2.15	3.30	6.55

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