Hello, My MF portfolio is like,Large cap: 51%Value equity: 8%Large & midcap: 3lanced hybrid: 37%All this is for long term and more than 7 years. I have only one fund for balanced hybrid which is HDFC balanced advantage (earlier HDFC prudence). I see that I need to have mid cap allocation more and HDFC mid cap opportunities fund seems to be good. I have another 10k to spare each month. So please suggest a better option from below,1. Keep funds in HDFC balanced advantage and start SIP in HDFC mid cap opportunities fund2. STP funds from HDFC balanced to mid cap opprtunities and start SIP in midcap opprtuntiesThe disadvantage of first option I see is there will be too many MFs in my portfolio. Please advice.
If your time horizon is just 7 years, then first do the asset allocation between debt and equity as 60% in debt and only 40% in equity. In equity, one large cap is enough. Also, after two years completion, remove all equity exposure and move all money to 100% debt.
Thanks. But I missed few details like my asset allocation for fixed income and equity is already 70:30 so need to increase the allocation in equity. Moreover, having long term plan of 7years meant one market cycle. It’s actually between 10 to 20 years.
If your time horizon is 7 years, then bring it to the said ratio.
No, time horizon is 10-20 years. So my point is, since I have already stopped SIP in HDFC balanced advantage, should I keep the fund as it is and start SIP in midcap opportunities or switch (STP) and SIP to midcap opportunities fund?
If your goal is 10+ years, then first do the asset allocation like 30:70 between debt and equity. For debt, you can use PPF or Ultra Short Term Debt Fund. For equity, one large cap, one mid cap and one small cap fund in the ratio of (50:30:20).
Regarding HDFC Balanced Fund, if you already stopped it, then let the money be there and keep watch on fund performance.
Now it’s clear. Thanks!