Mutual Funds

Your fund portfolio

K Venkatasubramanian | Updated on January 23, 2018


I am 28 and work for a private company. I am a regular investor in the following funds through the SIP route. Are these funds suitable for me?

ICICI Pru Focused Bluechip (₹2,000); Quantum Long Term Equity (₹2,000); SBI Pharma (₹2,000);

(HDFC Midcap Opportunities ₹3,000); UTI Opportunities (₹2,000); IDFC Premier Equity (₹2,000); and Reliance Equity Opportunities (₹3,000). I would like to invest ₹10,000 more. Kindly suggest schemes.

Darasana Vijayan

Although you are investing a fairly good sum every month, your portfolio lacks focus. You must also have a specific timeframe and definitive goals towards which you can save. That way, suggesting suitable schemes becomes easier.

If you are investing for the long term, you can avoid sector funds as such schemes require you to time the entry and exit. So, although SBI Pharma has done well, you can stop further investments.

Quantum Long Term Equity has lagged peers for the past couple of years. So, you can stop investments in the scheme.

Now, split ₹26,000 as follows.

Invest ₹5,000 each in ICICI Pru Focused Bluechip and UTI Opportunities. These are large-cap funds with sound track records. Park ₹3,500 each in Franklin India Flexi Cap and Mirae Asset India Opportunities, which are quality multi-cap schemes but have a large-cap tilt. Continue investing ₹3,000 in Reliance Equity Opportunities. Invest ₹3,000 each in HDFC Midcap Opportunities and IDFC Premier Equity. But keep a tab on the performance of IDFC Premier Equity closely. If there is significant underperformance vis-à-vis peers, invest in Canara Robeco Emerging Equities instead.

Take a long-term investment horizon. Review your portfolio once every year and take necessary course corrections and try to rebalance.

I am 24 and have been investing ₹2,000 in HDFC Prudence through the systematic investment plan (SIP) mode since May 2011. Now I wish to stop investing in this fund and start and SIP for ₹4,000 in a small- and mid-cap fund. Please suggest schemes for fresh investment.

Dipak Agarwal

Invest ₹2,000 in HDFC Midcap Opportunities and the balance ₹2,000 in Franklin India High Growth Companies. The latter is a multi-cap scheme. Both funds have delivered quite well over the years. If you feel the risks are high, you can invest in UTI Equity, a large-cap fund instead of Franklin India High Growth.

Published on May 24, 2015

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