Comment on my portfolio

----- Original Message -----
From: Vishnu
To: sharesher@indiatimes.com
Cc: goodfundadvisor@yahoo.com
Sent: Thu, 7 Aug 2008 21:26:43 +0530 (IST)
Subject: investment advice needed

Dear Sir,

I am Vishnu, 29yrs old, below are my investment details, would you pl review and advise to enhance the same.

Insurance Details:

LIC - Jeevan Anand Since Jul 2004 with qtrly premium of Rs. 3172(Sum Assured: 3L)

LIC - New Jana Raksha Plan since Dec 2005 with qtrly premium of Rs. 2012 (Sum Assured: 2.1L)

LIC - Then Endownement Assurance Policy since Dec 2005 with qtrly premium of Rs. 3934 (Sum Assured: 5.5L)

LIC - Bima Gold since Dec 2005 with qtrly premium of Rs. 1650 (Sum Assured: 2L)

ICIC Pru Life (Life Time Supper) since Feb 2007 with monthly premium of Rs. 3333 (Sum Assured: 5L)

PORD - Since Jul 04 every month Rs. 500

Mutual Fund:

Franklin Templeton India Tax Shield (G) - Since Dec 05 SIP of Rs. 2000

SBI Mangnum Tax Gain (G) - Since Jun 08 SIP of Rs. 2000

and also started putting my hands in share markets since oct 07 and following are the share till now i had invested with a sum of 1 lac.

BHARAT HEAVY ELECT. LTD

HIND.UNILEVER LTD.

ITC LTD

M.R.P.L.

OPTO CIRCUITS (IND)

ORIENTAL BANK OF COMMERCE

POWER GRID CORP. OF IND. LTD

QUANTUM GOLD FUND -EXCHANGE

RELIANCE COMMUNICATION LTD

RELIANCE INFRASTRUCTURE LTD

RELIANCE NATURAL RESOURCES LTD

RELIANCE PETROLEUM LTD

RELIANCE POWER LTD.

SPICEJET LTD.

UNITECH LTD.

VALUE INDUSTRIES LIMITED

egarly waiting for your reply...

Regards,

Vishnu

SRIKANTH SHANKAR MATRUBAI's Reply ::

Dear Vishnu,
From your portfolio of investments, it is evident, a lot of changes is required to make it more balanced, so to say.
First of all, your investments in ULIPs is too high. Insurance is NOT an Investment. You seem to have missed the point. Have only Term Insurance, and rather go for Diversified Equity Funds.
Regarding your Insurance Portfolio, as soon as the mandatory 3 years of lock-in completed, come out of the ULIP investments. Rather go for Pure Term Insurance Plans.

Even your investments in Tax Funds leave a lot to be desired. SBI Magnum Tax Gain had a great run in the past, but because of its bloated corpus, it will be difficult for the fund to give Even Market Returns. And Franklin TaxShield has been an underperformer for some time and I see no reason how it will become an outperformer. You could look at s
Birla Sunlife Tax Relief 96 Fund
DWS Tax Saving Fund (Here you will get Free Life Insurance of 5 times of your investment)
DSPML Tax Saver Fund
Fidelity Tax Advantage Fund
HDFC Tax Saver Fund
Lotus India Tax Plan (its heavy Banking exposure will see it outperform, at least in medium term)
Principal Personal Tax Saver
Sundaram Tax Saver.

You could also look the following Equity Funds
Birla Sunlife Frontline Equity
DSPML World Gold Fund
Fidelity Equity fund
HDFC Prudence Fund
JM Contra Fund
Mirae Asset India Opportunity fund
Reliance Growth Fund
Sundaram Select Focus fund
DWS Opportunity fund


You should consider investing through SIPs for extracting maximum returns with minimum effort.

Regarding your equity portfolio, you seem to have a soft corner for Reliance Group. Never love your stock. Love only your money. Switch from Quantam Gold Fund to DSPML World Gold Fund
You could also consider completely exiting Reliance Natural Resorces ltd and Spice jet Ltd. I could not make out Value Industries.
You could consider investing in
GMR INFRASTRUCTURE LTD
FORTIS HEALTHCARE
WEBEL SL ENERGY

These scrips will compliment your existing portfolio. Overall, you have a balanced Stocks Portfolio. Quick changes is needed in ULIPs and Mutual Funds Portfolio.
Best of luck,
Srikanth