Friday, September 5, 2008

Changes in Portfolio reqd?

One boarder asked "Currently as an NRI i hold the following purchased at 15,17000 and todays value of 17,6000.
HSBC Equity DRei 15 %
Fkln Primaplus DRei 14 %
Reliance Nri DRei 12 %
Magnum Contra DREi 10 %
Tata Pure Equity DRei 9 %
Tata Infrastucture Grow 9 %
Birla Sunlife Equity DRei 7.5 %
Sundaram Select Focus DRei 7.5 %
HDFC Top200 DRei 4 %
HDFC Midcap Grow 4 %
DSP ML Equity Drei 2.5 %
SBI Infrastruct Grow 2.5 %
Birla Midcap DRei 2.5 %
Franklin Flexicap Grow 1.5 %
UTI MNC Drei 0.5%
The lockin funds of HDFC Midcap and SBI infrastructure i am blocked for 3yrs.
On a time frame of 3 yrs Please advice on the composition of the above and future investments / additions or deletions. What about any specfic Debt Funds also ? Please advice. Monc

Your portfolio is very good but needs a bit trimming and just a bit of rebalancing.
Because of being blocked in SBI Infrastructure, you can't obviously switch out from it, but you do need to reduce your exposure in Infrastructure Funds from an overall 11.5% to under 5%. So, it would be prudent if you could sell/switch Tata Infrastructure to Tata Balanced Fund as I do not see any Balanced Fund in your portfolio.

You can stay on with UTI MNC Fund as it's investment horizon is being widened to Indian Domestic Companies which derive substantial revenue from International markets.

Your large cap ratio of investment is very small at 11.5% and Midcap exposure is rather high at 28%, so you could switch from Birla Mid cap to Birla Sunlife Frontline Equity Fund.

You should also a substantial part of your investment in Franklin Prima Plus to Templeton India Equity Income Fund.

Regarding Debt Funds, you better stay invested in Equity Funds for better returns and maybe look to add some Balanced Funds.

Considering your time frame of 3 years, you should definitely reduce Infrastructure and Mid cap funds and add Large Cap and Balanced Funds.

Best of luck.

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