Sunday, May 18, 2008

Investment Advise

One Person wrote :
I am an NRI and have been investing in mutual funds for the last 4 years. I am 58 years old and will be returning back to India in 2 years time. I require about 40 to 50K as monthly expenses from my investments once I am back in India. I request our fellow boarders Ranjan, Wadia, Ashal and Kentmss to review my portfolio and suggest if any changes are required.
My present investments are as follows.
Safe Investments:
1) Bank FDs and other fixed income investments. 30 lac
Mutual Funds:
1) Birla Sunlife Equity. 5.5 Lac (On going SIP)
2) HDFC Equity. 4.7 Lac (On going SIP)
3) HDFC Prudence 4.5 Lac
4) Reliance Growth 4.5 Lac
5) Templeton India Equity Income 7 Lac
6) UTI Infrastructure 1.5 Lac (On going SIP)
7) UTI MIS Advantage 15 Lac
8) ICICI Pru Index 6 Lac
Hoping to hear from you all,

MY REPLY :Dear Guest, you should thank Ashalanshu for giving such a detailed analysis of your portfolio and your future expected income. He is bang on target when he says that with the kind of investment you have made, 40-50k per month should not be a problem.
As we age, it is always better to shift our investments gradually to Large Cap Funds and Balanced Funds. I would advise you to shift your funds further to Dividend Payout option.
And finally, regarding your holdings, Continue your investment in Birla Sunlife Equity Fund for now, but let your SIP go to Birla Sunlife Frontline Equity Fund.
Switch from HDFC Equity Fund to HDFC Top 200 Fund for lesser volatility and smoother journey.
Continue your investments in HDFC Prudence Fund and invest more as and when possible.
Reliance Growth is slightly baised towards Mid-caps, hence better you stop your fresh sips in the fund and consider investing the same in SBI Magnum Balanced Fund.
Templeton Equity Income Fund has been a favourite of mine and is a must have in all portfolio. The fund invests in High Dividend Yielding Stocks across geographies and thus spreads your risks.
I advise you to redeem your investment in UTI Infrastructure Fund and invest the proceeds in DSPML Top 100 Fund. Even though Infrastructure as a theme is a favoured investment by most fund managers. It is not advisable for your goal to have such a highly volatile fund.

You can consider investing in some Arbitrage Funds and Monthly Income Plans with around 15-30% equity exposure for debt plus returns and safety purposes.
Best of luck.
Srikanth Shankar Matrubai

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