Tuesday, February 17, 2009

Retired Persons Portfolio

Mr.Anusirdi wrote :
I am a retired and requires advice on tax payment.My income is ....
Monthly pension.... Rs.11000/-per month
Interest on FD... Rs. 6000/-per month
Rent on property... Rs 2000/-per month

My monthly expenditure on house loan Emi and insurance
House laon EMI... Rs. 5500/- per month
PLI... Rs. 1100/- per month

MY yearly premium of ULIP
Yearly... Rs 55000/- per anum
Can you help me in modifying my present MF portfolio for better returns after 2 years period
as on 26082008 Quantity Inv. Amt

Birla SL AAF -Conservative (D) 604.747 9,295
HDFC Prudence Fund (G) (2) 116.34 15,357
LIC MF Floater MIP-Plan A (AD) 2068.218 25,005
LIC MF Floating Rate Fund (G) 2272.767 27,991
LIC MF MIP (MD) 4885.623 50,029
Reliance Diver. Power - RP (G) (10) 148.744 10,000
Reliance Equity Fund - RP(G) 1000 10,000
Reliance Growth Fund - RP (G) (11) 61.347 24,000
Reliance Natural Resources (G) 977.995 10,000
Reliance Vision Fund - RP (G) (10) 43.137 10,000
SBI Magnum Contra Fund (G) (5) 1383.639 75,000
SBI Magnum Global Fund (D) (14) 1744.316 58,000
SBI Magnum Index Fund (G) 235.388 10,000
SBI Magnum Insta Cash (G) 546.747 10,000
SBI Magnum Tax Gain (D) 182.632 10,000
UTI VIS - Index Linked (D) 1759.201 25,000
Total : 379,677


Dear Anusirdi Sir,
As you are already on the wrong side of 50, it is better for you to be conservative while investing.
You do have good set of funds. Being a Retired Person having only Pension, Int on FDs and rent income, you need to supplement your income by investing in Large Cap Funds and Diversified Equity Funds, which you do have, but you could do with some Modification of your portfolio.
You have 16 funds in your portfolio, which is on the higher side. Your portfolio needs some trimming.
Immediately switch from Reliance Diversified Power Sector Fund to a Balanced Fund like Reliance Regular Savings Fund (Balanced option) or Large Cap fund like Reliance Vision Fund.
Also switch from SBI Global fund and SBI Index Fund to SBI Balanced Fund.
Redeem the following funds
LICMF Floating Rate Fund
Reliance Equity fund
SBI Insta Cash fund
UTI VIS Index Linked

From the proceeds you receive, you consider investing in Good conservative Large Cap Funds like
Birla Sunlife Frontline Equity Fund
DSPML Top 100 Fund
Sundaram Select Focus Fund
After effecting these changes, your portfolio will look something like this.
Birla SL AAF -Conservative
Birla Sunlife Frontline Equity fund
DSPML Top 100 Fund
HDFC Prudence Fund (G)
LIC MF Floater MIP-Plan A
Reliance Growth Fund - RP (G)
Reliance Natural Resources (G)
Reliance Vision Fund - RP (G)
SBI Magnum Contra Fund (G)
SBI Magnum Balanced Fund
SBI Magnum Tax Gain (D) 182.632 10,000
Sundaram Select Focus Fund

Best of luck,
Srikanth shankar Matrubai
Visit http://goodfundsadvisor.blogspot.com for More Detailed Mutual Fund Advise.

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