Should these recategorised funds be in my portfolio?

By Morningstar |  27-06-18 | 

After the fund re-categorisation, I request your views on the following funds: ICICI Pru Multi Asset Fund, ABSL Focussed Equity Fund, Franklin India Bluechip Fund.

Should I continue with my SIP?

 - Gopalan

ICICI Prudential Multi Asset Fund was earlier ICICI Prudential Dynamic Plan. It invested in a mix of equity and fixed income. There was no fixed allocation, as in the case with balanced funds, but was dynamically managed as per the valuations of the market. Historically, the fund was largely tilted towards equities. Under the new mandate, the fund will invest into a mix of equity, fixed income and even gold. Having said that, we do expect a larger allocation towards equities.

ABSL Focused Equity Fund was earlier Aditya BSL Top 100. As is evident by the name, it was a large-cap fund earlier but now is a multi-cap style focused equity fund, which means it will sport 30 stocks only. It is important to highlight that focused funds tend to be more volatile due to a concentrated strategy. So you should consider your risk-return objectives while looking at the revised scheme mandate.

Franklin India Bluechip is a pure large-cap fund, run by a highly experienced manager with a quality bias. There is no change in the investment mandate of the fund.

On a standalone basis, each of these funds are good investment options. They are fairly well-run by proficient managers.

It is now up to you to take into account your personal risk-return objectives. Look at the funds from a holistic portfolio perspective – in conjunction with other funds and investments.

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