Am I investing in good schemes?
If you have any mutual fund queries, message ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
By ET Online |
BCCL
My son is 47 years old. He has SIPs of Rs 3,000 in the following funds for a period of three to five years:
Birla Sun Life Pure Value Fund
BSL Frontline Equity Fund
BSL Monthly Income (G)
HDFC Equity Fund (G)
HDFC Prudence Fund (G)
HDFC Top 200 Fund (G)
ICICI Prudential Dynamic Plan
ICICI Prudential Focussed Bluechip Equity Fund
IDBI India Top 100 Equity Fund (G)
IDBI Nifty Index Fund
Are these funds good?
--Kalyanaraman
Pankaj Gera, a Certified Financial Planner, responds:
My observations are:
(If you have any mutual fund queries, message ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
Birla Sun Life Pure Value Fund
BSL Frontline Equity Fund
BSL Monthly Income (G)
HDFC Equity Fund (G)
HDFC Prudence Fund (G)
HDFC Top 200 Fund (G)
ICICI Prudential Dynamic Plan
ICICI Prudential Focussed Bluechip Equity Fund
IDBI India Top 100 Equity Fund (G)
IDBI Nifty Index Fund
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IDBI Monthly Income PlanAre these funds good?
--Kalyanaraman
Pankaj Gera, a Certified Financial Planner, responds:
My observations are:
- You have selected too many funds. Normally, four to five funds are sufficient to achieve diversification.
- Asset allocation between debt and equity is based on one’s risk appetite. There can be either debt and equity funds matching one’s requirements or pure debt and equity funds to rebalance the portfolio. There are two monthly Income Plan (MIP) funds with debt component of 70 per cent to 75 per cent, one balance fund with the debt component of 25 per cent to 30 per cent. Choose pure debt fund, preferably an actual fund.
- The portfolio is titled towards largecap funds (BSL Frontline Equity, HDFC Top 200, ICICI Prudential Focussed Bluechip & IDBI Nifty Index), one midcap fund (BSL Pure Value) and three mulitcap funds (HDFC Equity, ICICI Prudential Dynamic Plan & IDBI Top 100). Look at maximum two largecap, two multicap and one midcap fund to consolidate your investment into few funds, which is relatively easier to monitor and manage. Invest in comparatively new fund houses like Motilal Oswal MOSt Focused Multicap 35 Fund and Mirae Asset – India Opportunities (largecap) and Emerging Bluechip (midcap) Fund for SIP.
(If you have any mutual fund queries, message ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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