Friday, June 13, 2008

Investment Advise for a 32 year old

Query recd :
"I'm 32 years old and had invested in the following funds since Jan 2007. plz review my portfolio and suggest the changes as I can continue the SIPs for the next 5 years.

Equity - Diversified (monthly SIP of Rs. 1000 each))

(1)Franklin India Prima Plus Fund (G) 1.69%

(2)HDFC Growth Fund (G) 1.29%

(3)HDFC Top 200 Fund (G) 1.30%

(4) ICICI Pru Dynamic Plan (G) 1.90%

(5) Reliance Equity Opportunities Fund - Retail Plan (G) 0.12%

(6) Reliance Growth Fund - Retail Plan (G) 0.48%

(7) Reliance Regular Savings Fund - Equity Option 0.15%

(8) SBI Magnum Contra Fund (G) 1.66%

(9) SBI Magnum Global Fund (G) 1.20%

(10) Reliance Diversified Power Sector Fund - Retail Plan (G) 6.53%

Close ended funds (single investments)

(1) SBI Infrastructure Fund - Series I (G) 3.24%

(2) Sundaram BNP Paribas Equity Multiplier Fund (G) 0.93%

(3) Tata Indo-Global Infrastructure Fund (G) 1.29%

(4) HDFC Mid-Cap Opportunities Fund (G)1.50%

Equity Tax Saving (single investments)

(1) Birla Sun Life Tax Relief 96 (D) 1.95%

(2) Principal Personal Tax Saver Fund 5.81%

(3) SBI Magnum Tax Gain Scheme (D) 2.31%

(4) SBI Magnum Tax Gain Scheme (G) 3.15%"

"Dear Sir,
Your portfolio may look big but you seem have to invested in good quality funds excepting for some. Of course, no one can be perfect. I would like to suggest some changes which if incorporated, will definitely help in enhancing overall returns of your portfolio.
First and foremost., kindly stop your sip in the following non-performing funds, namely:-
1. ICICI Pru Dynamic Plan
2. Reliance Equity Opportunities Fund
3. SBI Magnum Global Fund
4. Franklin Prima Plus.
I have got my own reasons for recommending stoppage in Franklin which you can find in my previous messages.
Of the 4000 saved, consider investing in the following funds;
1. Birla Sunlife Frontline Equity Fund. This investment will give you Large Cap exposure which you right now have only through HDFC Top 200 Fund.
2. DSPML Natural Resources and New Energy Fund. Invests in Natural Resources stocks across the world and will give both diversification as well sector diversification.
3. Templeton India Equity Income Fund. This fund invests in High Dividend Yielding Stocks across the globe and will give stability to the portfolio during all the times.
4. SBI Magnum Comma Fund. This fund will help you ride the Commodities Boom.
Best of luck.
Srikanth Shankar Matrubai.

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