I have invested in:
- SBI Bluechip Fund (Large Cap)
- Invesco India Growth Fund (Large and Mid Cap)
- L&T Midcap (Mid Cap)
- Franklin India Smaller Companies (Small Cap)
- Mirae Asset India Equity (Multi Cap)
- Motilal Oswal Multicap 35 (Multi Cap)
- L&T Value Fund (Value)
Which funds and category should I increase my exposure to?
- Avneesh
Those are 7 funds across fund houses. It is tough to say how well diversified you are because that would depend on how much you are investing. If you are investing small amounts, then one would question why you are investing in all three - a large cap, a mid cap, and a large and mid cap fund. Also, the need for 2 multi-cap funds. And the need for 2 funds from the same fund house.
It is hard to give you a recommendation without the knowledge of your risk return objectives and the current split across the various fund categories.
Here are some basic pointers:
- If you are below 30 and looking to invest for the next 20-30 years. Look at allocating a large portion of your portfolio in equities. Within equities, you can increase exposure to mid and small cap funds. Use fixed income funds largely for meeting short term goals.
- If you are above 40 and looking to invest for at least 10-15 years, then look to maintain a balanced allocation of 50:50 in equity and fixed income. Within equities, allocate greater amounts towards large cap funds. Use fixed income funds for short term goals.
You can read our analyst views here:
SBI Bluechip
Mirae Asset India Equity
L&T India Value
Franklin India Smaller Companies
These funds have not been analyzed but you can access more information on them:
Invesco India Growth Opportunities
L&T Mid Cap
Motilal Oswal Multicap 35
I am a newbie and just started investing in mutual funds. These are my investments:
- Aditya Birla Sun Life Equity (From Dec 2017): Rs 1,000
- SBI Bluechip (From Dec 2017): Rs 1,000
- L&T Emerging Businesses (From May 2018): Rs 1,000
- Aditya Birla Sun Life Pure Value Fund (From May 2018): Rs 1,000
Do I need to continue with the same or change my portfolio?
- Rashid
The current funds in your portfolio are a reasonable mix of funds.
They fall in various categories - large-cap category (SBI Bluechip), multi-cap (Aditya Birla Sun Life Equity), small-cap (L&T Emerging Businesses Fund) and value (Aditya Birla Sun Life Pure Value).
Though you have two from the same fund house, it is still a diversified mix. Each of these funds is well managed and you can continue to hold on to your investments.
Since you are starting out, we would recommend consulting with an Investment Adviser who will guide you through understanding your risk-return objectives and help drawing up a suitable asset allocation for your portfolio.
I am a long-term investor. I am 32 years old. All investments in direct mode.
Current worth of portfolio (SIP in brackets)
- Axis Long Term: Rs 2.21 lakh (Rs 5,000)
- Franklin Smaller Companies: Rs 1.7 lakh (Rs 5,000)
- Motilal Oswal Multi 35: Rs 1.25 lakh (Rs 5,000)
- Motilal Oswal Long Term: Rs 0.25 lakh (Rs 5,000)
- Mirae Emerging Bluechip: Rs 0.7 lakh (Rs 5,000)
- Reliance ELSS: Rs 1 lakh
- HDFC Hybrid Equity: Rs 2.25 lakh (Rs 5,000)
- ICICI Balanced Fund: Rs 1 lakh
- HDFC Liquid: Rs 1 lakh
- Franklin Ultra Short: Rs 1.32 lakh
- Pranav
The current construct of your portfolio is weighted towards equity (75%). This is fair, considering you are still in the accumulation stage of life and have a long-term investment horizon.
The funds you have invested in are fairly well managed funds.
The only point we note is that your allocation towards “large cap” stocks as a proportion of your overall portfolio is on the higher side. While you don’t hold any large-cap funds, many of the funds you hold have an inherent large-cap bias. Given that you have a long-term investment horizon and if your risk-taking ability allows you to, we recommend adding some additional allocation towards small and mid-cap funds. While these funds can tend to be much more volatile in the short term (as is being witnessed in 2018), over the long term, these funds can be excellent wealth creators. But you must be mentally prepared to stomach the interim volatility.
Our analysts have commented on these funds in your portfolio. You can check their views here.
Axis Long Term Equity
Franklin India Smaller Companies
Mirae Asset Emerging Bluechip
Reliance Tax Saver
Franklin Ultra Short Bond Fund
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