My current portfolio:
SBI Bluechip Fund: Rs 2.45 lakh
ICICI Pru Bluechip Fund: Rs 3.9 lakh
Principal Emerging Bluechip fund: Rs 50,000
Motilal Oswal Multicap Fund: Rs 35,000
Kotak Standard Multicap Fund – Rs 50,000, Mirae Asset India Equity Fund (SIP of Rs 5,000 per month)
HDFC Small Cap Fund – Rs 1 lakhs
L&T Emerging Business Fund – Rs 37,500
HDFC Hybrid Equity Fund – Rs 5 lakhs.
I also have one ELSS, IDFC Tax Advantage Fund- Rs 50,000 and Franklin India Short Term Fund – Rs 20,000.
— Ritika Jain
Juzer Gabajiwala, Director – mutual fund research, Ventura Securities, based in Mumbai, responds:
As per your current investment, 90% of your allocation is in equity and 10% in debt (Excluding Franklin as it is under the process of winding up). In terms of the portfolio, it is preferred to follow an asset allocation-based approach.
Assuming that your age is below 50 years and you are a moderate risk-taking investor, you can maintain a ratio of 75-80 (Equity): 25-20 (Debt). Review your allocation at least once a year and if you notice any major change, realign it to the original pre-decided allocation based on that time’s risk-taking appetite.
The schemes in the portfolio are decent but since you have started to invest only two months ago it is too early to give any verdict. Equity funds are generally held for more than 5 years for them to give good returns.
Going ahead, whenever you deploy additional funds in equity, you can do a staggered investment of 6-12 months rather than putting all the money at once. You can also look at Asset Allocator funds which are purely asset allocation-based mutual fund schemes. Also, as per your current investment, the market cap allocation is 67% in large cap, 13% mid cap and 9% to small cap.
