I have SIPs running in the below funds –
- Axis Long Term Equity Fund – Direct Growth – since 2016 @ 5,000 pm; Retn 26 %
- BSL Tax Relief ’96 Fund (ELSS U/S 80C of IT ACT) – Dividend Pay out – Dec 2008 to Jun 2016 @ 500 pm; re-started since 2016 @ 3,000 pm; Retn 22.47%
- RELIANCE TAX SAVER (ELSS) FUND – GROWTH OPTION – Dec 2008 to Jun 2010 @ 1,000 pm; re-started since 2016 @ 3,000 pm; Retn 23.65%
- MIRAE ASSET EMERGING BLUECHIP FUND – Growth – 5,000 pm will begin from 15th Nov 2017
I was investing via SIPs for few years in the below funds –
- BSL Tax Relief’96 Fund- (ELSS U/S 80C of IT ACT) – Growth – 2008 to 2013 @ 1,000 pm; Retn 23%
- HDFC Tax Saver – Growth Option – 2009 to 2016 @ 500 pm; Retn 17.53%
- HDFC Top 200 Fund – Growth Option – Jun 2013 to Feb 2016 @ 2,000 pm; Retn 16.52%
- Principal Personal Tax Saver Fund – Growth – Jun 2008 to Jun 2013 @ 1,000 pm; Retn 16.59%
- SBI Magnum Tax Gain Scheme – Growth – June 2008 to Jan 2016 @ 2,500 pm; Retn 16%
- SUNDARAM SELECT FOCUS – GROWTH – May 2008 to Jul 2013 @ 500 pm; Retn 14.42%
I am contemplating (though I do not need this money now) to redeem units (which have completed their lock-in) under Principal Personal tax saver and HDFC Tax saver funds immediately (because the NAV is at all time high plus the Mean, SD, Sharpe, Sortino are unfavourable in comparison to their category). I wish to invest this money via SIP into 2 better performing funds for next 5 years or more –
BSL Tax Relief’96 Fund- (ELSS U/S 80C of IT ACT) – Growth @ 2,000 pm
Diversified Equity fund or a pure small cap – to be selected – @ 3,000 pm
Well, to be frank, originally, I was contemplating to invest the money received upon redemption into a liquid or UST fund, then do STP from there. But after reading your blog on Taurus Liquid fund fiasco, I dropped this idea and decided to keep it safe and simple using savings a/c via SIP. I have an online DBS DigiBank a/c where I will park money to get 6% quarterly compounding interest and then trf them periodically to the savings a/cs to fund the SIPs.
- Age – 38 years
- Risk profile – Moderately High
- Time Horizon – Long term. I want to stay invested for the next 12 years.
- Marital status – Single
- I do not have debt funds. I have few lacs in PPF and savings.
Please suggest –
- If I can go ahead with the redemption and re-investment strategy cited above.
- If I need to consider redeeming units (which have completed their lock-in) under funds 7,9 and 10. Invest via SIPs into other better performing funds.
Do you need these many funds? How you arrived yourself that you are the MODERATELY HIGH RISK TAKER? What asset allocation you are following between debt and equity for your 12 years goals? Asset allocation must be 40:60 in debt and equity. For debt, if goal horizon matching with PPF, then continue. Else use ultra short term debt funds. For equity, one large cap and one mid cap enough.
Do you need these many funds? – No, i do not. I am looking to consolidate my portfolio. As you can see, my SIPs are running in the 1st 4 only. Hence, the questions on redemption.
How you arrived yourself that you are the MODERATELY HIGH RISK TAKER? – No specific calculation. Purely on willingness.
What asset allocation you are following between debt and equity for your 12 years goals? – 40:60 DE is fine. I take your advice to invest in one large cap and one midcap.
Please come back to me on the below –
1. I wish to consolidate my portfolio. I am considering redeeming units (which have completed their lock-in) under funds HDFC Tax Saver, Principal Personal Tax Saver, SUNDARAM SELECT FOCUS. Can I (though i do not need the money now) ?
2. If yes for redemption, i will invest via SIP into one of the existng large cap or mid-cap funds.