Hello Mr. Basu,
My Direct MF portfolio status is below,
ABSL Focus Equity Fund (G) (D): Stopped SIP of 5000 after 3 years
ABSL Frontline Equity Fund (G) (D): Stopped SIP of 5000 after 3 years
HDFC Balanced Advantage Fund (G) (D): Stopped SIP after 3 years
ICICI Prudential Bluechip fund (G) (D): 5000 Monthly
My goal is to create a corpus for my daughter’s education aftte at least 10 years. I can take a moderate risk. I would like to reduce all my direct MFs to minimum possible funds. Most of them seems to be alike. These are all for long term for at least next 10 years. (Please also know that I have regular MF investments below.) Please advice. I can invest additional 10000 per month. Which direct fund(s) shall I continue? What do I do with other funds? Keep it as it is? Redeem or STP/SWP?
I am also investing in MFs regular ones (list is below). I would like to continue with them.
SBI Blue Chip Fund (G) (R): 7600 Monthly
L&T India Value Fund (G) (R): 7400 Monthly
Mirae Asset India Opportunities Fund (G) (R): 7400 Monthly
Reliance Vision Fund (G) (R): 600 Monthly
What prompted you to doubt your existing funds? What asset allocation you are following between debt and equity and within equity in different funds?
These mutual funds are for long term and I do have couple of funds for debt (as an emergency and to secure money for long term as well). So just for long term equity, I think, so many funds are not necessary. I need diversification in terms of sectors like banking, tech, farma, auto and infra. Many funds seem to invest in similar companies/sectors. So I wanted an expert’s opinion about having may be one funds out of four direct funds I am investing.
You need 2-3 funds for your equity portfolio. Regarding sectors, I avoid sector-based investment but pure diversified products.
Thanks. So could you suggest funds I should continue with and funds I should stop (STP to other continued funds) from the list below?
ABSL Focus Equity Fund (G) (D)
ABSL Frontline Equity Fund (G) (D)
HDFC Balanced Advantage Fund (G) (D)
ICICI Prudential Bluechip fund (G) (D)
Considering regular funds I will be continuing with as below,
SBI Blue Chip Fund (G) (R)
L&T India Value Fund (G) (R)
Mirae Asset India Opportunities Fund (G) (R)
Reliance Vision Fund (G) (R)
First, do the asset allocation like 50:50 between equity and debt. For debt, choose Liquid Funds and Ultra Short Term Debt Funds. For equity, use one large cap fund (like Franklin India Bluechip or ABSL Frontline Equity Fund and one mid cap fund like HDFC Midcap Fund or Franklin India Prima Fund.
Thanks. I would re-balance my MF portfolio accordingly.