Hi experts, I am still waiting for a response to my question which I asked on 5th July.
Please revert
Hi expert, over the years I have been investing in mutual. 90% of the funds are the lumpsum amounts which I invested in 2007. A few I have been investing in sip since the last 3-4 years. I want to consolidate and work on having few mutual funds than having many which give varied returns. It will be great if you can help me to ascertain which I can keep and which I can let go DSP-BR India TIGER - RP (D) DSP-BR Top 100 Equity - RP ICDW (D) Franklin India flexi cap fund - IDCW "HSBC Large Cap Fund - Regular IDCW (Formerly known as HSBC Large cap - L&T India Large Cap Fund (D)" Nippon India Growth Fund IDCW plan Nippon India Power and Infra fund SBI Magnum Midcap Fund (D) "SBI Contra Fund (D) SBI Magnum Sector Funds Umbrella Contra" Sundaram Large cap fund regular - IDCW Sundaram Large cap fund regular - IDCW "HSBC Progressive Themes (D) HSBC Advantage India Fund" HDFC Infrastructure Fund (D) Edelweiss Mid Cap Fund (Regular Plan - IDCW Option - Payout) Sundaram Diversify equity fund - Regular - IDCW EBRG - Mirae Asset Large and Midcap fund (formerly known as Mirae asset emerging blue-chip fund) - SIP HDFC Children's gift fund - Regular plan (Lock in) - SIP I looking to build my portfolio by having few mutual funds with extra money in them rather than having many mutual funds and less money in each. Kindly help me out with suggestions
Ans: Reviewing Your Current Portfolio
You have invested in many mutual funds since 2007. Let's streamline your portfolio to focus on a few high-performing funds.
Evaluating Fund Categories
Large Cap Funds
HSBC Large Cap Fund - Regular IDCW
DSP-BR Top 100 Equity - RP ICDW (D)
Sundaram Large Cap Fund Regular - IDCW
SBI Contra Fund (D)
Large Cap funds provide stability and steady growth. Keep funds with consistent performance.
Flexi Cap Funds
Franklin India Flexi Cap Fund - IDCW
Flexi Cap funds offer a balanced approach. They invest across large, mid, and small caps. Retain those with a strong track record.
Mid Cap Funds
SBI Magnum Midcap Fund (D)
Edelweiss Mid Cap Fund (Regular Plan - IDCW Option - Payout)
Mid Cap funds offer higher growth potential but come with higher risk. Retain the best performers.
Sector/Thematic Funds
Nippon India Power and Infra Fund
HDFC Infrastructure Fund (D)
HSBC Progressive Themes (D)
HSBC Advantage India Fund
Sector funds focus on specific industries. They can be volatile. Evaluate their performance and market outlook.
Diversified Equity Funds
DSP-BR India TIGER - RP (D)
Sundaram Diversify Equity Fund - Regular - IDCW
These funds invest in various sectors and companies. Retain those with strong, consistent returns.
Large and Mid Cap Funds
Mirae Asset Large and Midcap Fund (formerly Mirae Asset Emerging Bluechip Fund) - SIP
These funds balance between stability and growth. They are a good addition for diversification.
Children's Funds
HDFC Children's Gift Fund - Regular Plan (Lock-in) - SIP
These funds have a specific goal in mind. They are usually kept for a longer-term investment.
Consolidation Strategy
Reduce Overlap
Consolidate Large Cap funds. Choose one or two top performers.
Reduce the number of Sector funds. Focus on those with a positive outlook.
Keep the best-performing Mid Cap funds. Avoid too many in this category.
Focus on Performance
Retain funds with strong historical performance and potential.
Let go of funds with inconsistent returns or underperformance.
Allocate More to High Performers
Invest more in top-performing funds. This enhances returns and reduces management complexity.
Avoid spreading investments too thin across many funds.
Consider Fund Management Style
Opt for actively managed funds. They offer the potential for higher returns.
Avoid index funds due to their passive nature and lower flexibility.
Benefits of Regular Funds
Investing through an MFD with CFP credentials provides guidance.
Regular funds offer support and advice, unlike direct funds.
Suggested Actions
Large Cap and Flexi Cap Funds
Retain top-performing Large Cap and Flexi Cap funds. They provide stability and balanced growth.
Mid Cap and Sector Funds
Focus on the best-performing Mid Cap funds.
Retain Sector funds with positive outlooks. Evaluate their potential in the current market.
Diversified Equity Funds
Keep diversified funds with consistent returns. They provide broad exposure and reduce risk.
Children's Funds
Maintain investments in children's funds. They are aimed at long-term goals.
Final Insights
Streamlining your mutual fund portfolio is essential. Focus on a few high-performing funds. Consolidate your investments for better returns and easier management. Opt for actively managed funds and regular funds through MFD with CFP credentials. This strategy will help you achieve your financial goals effectively.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
