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    Do I need to make changes to my mutual fund portfolio?

    Synopsis

    If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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    I am investing in the following mutual funds:
    Mirae Asset Tax Saver Fund: Rs 2,000
    Axis Long Term Equity Fund: Rs 2,000
    Mirae Asset Emerging Bluechip Fund: Rs 1,000
    Mirae Asset Large Cap Fund: Rs 1,000
    Mirae Asset Short Term Fund: Rs 2,000
    SBI Banking & Financial Services Fund: Rs 500

    Could you please review my portfolio and suggest changes if required?
    --Mahesh Sinare

    Subir Jha, Founder, Buckspeak, A Hyderabad based wealth management firm, responds:

    Your mutual fund portfolio has a significant exposure to one particular fund house, which should be reduced. Overall, one should not have more than 25-30% exposure to a particular fund house. You may consider replacing Mirae Asset Large Cap Fund with ICICI Prudential Bluechip Fund. The change I am recommending is purely from a risk management perspective.

    Also, don’t just look at the short-term performance (1-3 years) of equity mutual funds, but look for consistent performance across cycles.
    Things You should consider
    • Annualized Return
      for 3 year: 5.14%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.6 Years
    Things You should consider
    • Annualized Return
      for 3 year: 7.4%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.7 Years

    This recommendation is based on incomplete information. I am assuming that you have got your risk profiling completed.
    (If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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    1 Comment on this Story

    satya ranjan nayak330 days ago
    Four schemes out of one mf AMC indicates high portfolio overlap. One or two schemes of one mf AMC for your sip investment in a portfolio is sufficient. No need to invest with number of schemes. It will overcome as over diversified portfolio. So, your reconstruct portfolio is : 1.Icici Pru bluechip 2. Mirae assets bluechip 3.axis long term equity 4. sbi banking & finance 5. Axis short term fund are enough for long term also for short term (debt) investment. Allocation of funds should as 1.largecap (30%) 2.large & midcap (20%) 3.elss (20%) 4.sectorial (10%) 5.debt (20%)
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