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This article is more than 2 year old.

Mutual Fund Corner: Is my mutual fund portfolio good?

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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/InvestmentMorningstar Analyst RatingMorningstar Rating OverallReturns (%)
    1-Yr3-Yr5-Yr
    Large-Cap
    Aditya BSL Frontline Equity GrSilverÙÙÙÙ-4.618.9014.26
    DSP Top 100 Equity Reg GrBronzeÙÙ-8.346.2210.34
    Franklin India Bluechip GrGoldÙÙÙ-5.356.8112.05
    HDFC Top 100 GrGoldÙÙÙÙ-1.5711.1914.81
    ICICI Pru Bluechip GrSilverÙÙÙÙÙ-1.0610.9614.34
    Reliance Large Cap GrSilverÙÙÙÙÙ0.4910.9017.58
    SBI Bluechip Reg GrBronzeÙÙÙÙ-5.247.9315.24
    UTI Mastershare Unit Reg GrBronzeÙÙÙ-0.628.0413.03
    Mid-Cap
    Aditya BSL Mid Cap GrBronzeÙÙÙ-14.807.9320.32
    DSP Midcap Reg GrSilverÙÙÙÙ-10.3510.9522.32
    Franklin India Prima GrGoldÙÙÙÙ-7.189.7521.74
    HDFC Mid-Cap Opportunities GrGoldÙÙÙÙÙ-8.7111.0822.91
    ICICI Pru Midcap GrBronzeÙÙÙ-10.239.4523.43
    SBI Magnum Midcap Reg GrBronzeÙÙ-15.374.1520.03
    Sundaram Mid Cap GrBronzeÙÙÙ-13.798.5022.03
    Small-Cap
    DSP Small Cap Reg GrSilverÙÙÙÙ-18.827.3326.72
    Franklin India Smaller Companies GrSilverÙÙÙÙ-14.268.7923.57
    HDFC Small Cap GrBronzeÙÙÙÙ0.4216.6620.74
    • 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 RatingMorningstar Rating OverallReturns (%)
      6-Mth1-Yr3-Yr
      Low Duration
      Franklin India Low Duration GrSilverÙÙÙÙÙ3.877.068.57
      ICICI Pru Savings GrSilverÙÙÙÙÙ3.526.387.69
      Reliance Low Duration GrBronzeÙÙÙÙÙ3.496.377.33
      Reliance Low Duration Retl GrBronzeÙÙÙÙ3.245.886.86
      Ultra Short Duration
      Franklin India US/T Bd Retl GrGoldÙÙÙÙÙ3.837.178.14
      Kotak Savings Fund Reg GrBronzeÙÙÙÙ3.516.597.30
      Short Duration
      Franklin India S/T Income GrSilverÙÙÙÙÙ3.495.987.89
      ICICI Pru Short Term GrBronzeÙÙÙÙÙ2.694.037.19
      Kotak Bond S/T Reg GrBronzeÙÙÙÙ2.814.266.67
      Reliance Short Term GrBronzeÙÙÙÙ2.153.306.55
      Click here to watch the full episode of Mutual Fund Corner

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