Dear Basu I have completed my portfolio and asset allocation. For Debit part I have selected Birla Sun Life Floating Rate Fund – Long Term Plan .( Ultra short term fund) Could you please review this Debit Fund My Port Folio Equity part : 10 years My goal. HDFC balanced Fund Birla sun life frontline equity Fund Franklin Smaller campanies Fund ICICI pru discovery Fund HDFC Mid cap opportunities Fund thanks Vijay
If your goal is 10 years away, then debt to equity should be around 40:60. Regarding debt, yes you can go ahead with that product. Regarding equity, one large cap and one midcap from your list enough. You already separated debt and equity. Hence, equity-oriented balanced fund not required. Also, avoid multi cap and small cap fund (in your case).
Thanks Basu. Is there any problem in muticap and small cap. I am investing money through SIP on these funds.
Franklin India Smaller campanies Fund
ICICI pru discovery Fund
YES. Multicap funds have mandate to move to any market cap based on the opportunity. Hence, at any point of time you may end up exposing higher towards large, mid cap or small cap. Hence, during that period, it may be risk to exposure to any one market cap. Hence, better to avoid.
Regarding small cap, considering your time horizon, it is better to avoid such high volatile and risky market cap.
Thanks for detailed information. Do i need to sell those two funds or any other alternative solution available ?