MF Portfolio Building

[zomzipp]

Hi

I am interested in starting investment in Mutual Funds via SIP. Till now I have invested only in ELSS Funds:
Sundaram BNP Paribas Tax Saver - G
Kotak Tax Saver - G
SBI Magnum Taxgain Scheme 1993 - G
Birla Sun Life Tax Relief '96 - DIVIDEND

in order to save tax. I want to start with Rs. 10000-12000 per month for Tax Exemption (which comes to Rs 60000 this year) and rest in Equity/Debt Funds in SIPs for wealth building.I have shortlisted some Funds across Equity, ELSS and Debt Funds from advice from my MF advisor, various rediff chats, moneycontrol site and valueresearch site. I need your advice on are these correct choices for building a long term Portfolio of say 5-10 years because I dont have exact idea on how different these funds portfolio(list of companies) are from each other. Please suggest the no. of funds and which ones from these or other than these ones to start investing and for what term should I invest. As there are around 5 days for SIP selection date, on which date should I t be done based on Market calculation? Also, as there is no entry load as per SEBI directive, should I still invest through my MF advisor for his advice and regular inputs, or should I invest directly? As there has to be some allocation in debt and gold also, please suggest in which funds to invest in? As I have no liabilities now and I can take risk with at least 1 fund of Rs 12000 , I have selected Rel Div PowerSector Retail Fund(G) thematic fund. Is this choice correct?

My shortlisted funds:

2 ELSS Funds ---
Sundaram BNP Paribas Tax Saver
Kotak Tax Saver

3 Equity Funds ---
DSP BR TOP 100 Fund
BSL Frontline Equity Fund
HDFC Top 200 Fund
HSBC Equity Fund
Sundaram Select Focus
Kotak 30
Franklin India BlueChip Fund
Kotak/DWS Investment Oppurtunities Fund


1 Debt Fund ---
Kotak Flexi Debt
Canara Robeco Income-G


1 Gold ETF/Fund--
GoldBeES ETF
Kotak ETF

Please suggest which ones to build a diverse portfolio from various categories and other than given ones.

As my current investment in MFs is only ELSS funds, should I stay invested in these or redeem them once lock-in period gets over.

Please take a look at my selection for new investments and suggest to final which ones.

 

[zomzipp]

hii..pls someone give ur feedback

 

[nsuresh_rasr]

my suggestion would be
1) HDFC TOP200
2) HSBC EQUITY
3) SUNDARAM SELECT FOCUS.

You can also go with

UTI Div yield fund
HDFC Prudence fund
Can Robeco Infrastructure.

 

[zomzipp]

hi
thanks for ur reply
I have come down to

HDFC Top 200 Fund - 20%
DSP BlackRock Top 100 Equity Fund - 20%
BSL Frontline Equity Fund - 20%
Sundaram BNP Paribas Select Focus - 20%
Reliance Growth - 10%
ICICI Pru Infracstructure - 5%
GoldBeES ETF -5%

Tax Saving
Sundaram BNP Paribas Tax Saver

what about this portfolio???

 

[conancare]

Hi zomzipp,

I would like to request to amend on the following.
Sundaram BNP Paribas Select Focus - 12%
Reliance Growth - 15%
ICICI Pru Infracstructure - 10%
GoldBeES ETF -5%

Regards,
Conan

 

[zomzipp]

hey thanks conan for replying...plz can u give the reason for above changes...the total doesnt come to 100%..how good is Canara Rebecco Tax Saver...btw i m only 27 yrs...n can take risk with one Fund.....

 

[zomzipp]

pls reply....

HDFC Top 200 Fund - 25%
BSL Frontline Equity Fund - 25%
Sundaram BNP Paribas Select Focus - 25%
Reliance Growth - 20%
GoldBeES ETF -5%

 

[zomzipp]

Hi,

This is what i got from ET NOW's Investor's Guide Show featuring advice by MF Expert for a 25 year old wanting Aggressive Portfolio...

Reliance Regular Savings Equity - 20% (Aggressive Large Cap)
IDFC Premier Equity Plan A - 20% (Aggressive Large Cap)
Sundaram BNP Paribas S.M.I.L.E. Reg - 20% (Aggressive Small/Mid Cap)
UTI Opportunities-G - 15% (Large Cap)
DBS Chola Opportunities-G - 15% (Aggressive Small/Mid Cap)
DSP BR Short Term - 10% (Debt)

See if this makes sense to you, I am trying to go with this as my profile suits this.

Can someone please suggest

 

[yogesh-tiwari]

Hi,

This is what i got from ET NOW's Investor's Guide Show featuring advice by MF Expert for a 25 year old wanting Aggressive Portfolio...

Reliance Regular Savings Equity - 20% (Aggressive Large Cap)
IDFC Premier Equity Plan A - 20% (Aggressive Large Cap)
Sundaram BNP Paribas S.M.I.L.E. Reg - 20% (Aggressive Small/Mid Cap)
UTI Opportunities-G - 15% (Large Cap)
DBS Chola Opportunities-G - 15% (Aggressive Small/Mid Cap)
DSP BR Short Term - 10% (Debt)

See if this makes sense to you, I am trying to go with this as my profile suits this.

Can someone please suggest

Ok..lets see how you have divided your porfolio..
Large Cap---55%
Small/Mid cap--35%
Debt-10%.

Critic of your portfolio

Too much exposure to mid/small cap (since you want to be aggresive..I see a lot of unnecessary risk as per current market.)

*Reliance Regular Savings Equity -- did you really study this fund? Highly talked about...I see many ppl going for this one.. I dont know why they dont look at fund internals.

*DBS Chola Opportunities-G--Good fund..but do you know why it performed and why it is not expected to perform as good as it did in last 6-12 months..I ll tell you later, when is the right time to choose a mid/small cap fund.

*DSP BR Short Term---why you shouldnt choose this fund..very simple see the returns below...
Trailing Returns
As on 11 Aug 2009 Fund Category
Year to Date 2.86 4.21
1-Month 0.09 0.32
3-Month 0.49 1.27
1-Year 6.44 9.54
3-Year 6.91 7.37
5-Year 6.42 7.75
Return Since Launch 6.31
There are other reasons too

*IDFC Premier Equity Plan A ---Excellent fund..A must for your portfolio

*Sundaram BNP Paribas S.M.I.L.E. Reg---Good midcap fund

*UTI Opportunities-G---Low risk, managed itself in a good way during this bear market..but didnt perform too well in last bull market...overall, when we are looking at getting good returns..then there are other that can perform much better.

First thing first..never pick your portfolio from such websites..do your own analysis.

Second, MFs are just like shares...so dont stick to them for too long...you need to sell them when they meet your target and get out and move onto another one.

Third, my way of looking at it...I 'd never buy small/mid cap MFs in bull or rangebound market(I hope you now, when to invest in them to get max return, in a bear market near bottom...I ll tell you how to find a bottom.)

Ok..now coming to making a good portfolio.

My advice.

1. Keep low exposure to mid/small cap..they have very high risk
2. Invest in MF with portfolio of Large cap exposure.
3. Keep gold in your portfolio as a must...around 10%..buy only goldbees..No to kotak.uti..etc. as you unncessarily pay them extra load and also they mostly have 90% investment in gold and rest in money market instruments
4. Invest in mid/small cap fund only when you see that benchmark indexes like nifty/sensex go below 13-14 P/E and hold only until P/E crosses 20-21..thats it..you ll make tons of money in mid/small cap MFs

Things you need to check when trying to figureout the right fund for you. Follow this link..it ll give a hint of the same...

http://www.jagoinvestor.com/2009/01/95-of-salaried-people-are-rushing-to.html

I hope this clears your view.(Probably, changed, at how to look at a MF)

Regards
Yogesh Tiwari

 

[zomzipp]

hey Yogesh thanks for your reply... as i mentioned I got this portfolio from ET NOW's Investor's Guide Show featuring advice by MF Expert Dhirendar Kumar(CEO, Valueresearchonline.com), So I wanted to cross check whether to go with this as I plan to go aggressive for next 2 years...

My earlier portfolio shortlisted was:
HDFC Top 200 Fund - 25%
BSL Frontline Equity Fund - 25%
Sundaram BNP Paribas Select Focus - 25%
Reliance Growth - 20%
GoldBeES ETF - 5%

Can you suggest what final portfolio to shortlist from above funds and earlier ones...


Secondly, if you dont mind, can I know your source of this excellent knowledge... and as you said do your own analysis.. how to go about it?

Please enlighten me...thanks