I am a retired person and have been investing in mutual funds since 2000. I’m asking this for my son, who is 38 years old and is very well placed. I have revised the portfolio to 11 from 16 and the SIP (systematic investment plan) will be for 24 months with a value of Rs10,000 per month, per scheme. I am attaching the revised portfolio for your reference.
Your portfolio looks good now and it also gives you an opportunity to account for future development in mutual funds.
However, you may keep some funds such as DSPML T.I.G.E.R–Reg, HDFC Top 200, Reliance Natural Resources Fund and SBI Magnum Contra for inclusion on revision. I hope and wish you earn decent returns on your investment.
I have invested in mutual funds and my present (December) valuations at Rs18.5 lakh in percentages are: DSPML T.I.G.E.R (1.82), DSP Top 100 (8.62), DSP World Gold (2.55), Fidelity Opportunities (1.96), Franklin India Opportunities (5.33), Franklin Primaplus (8.11), HDFC Equity Fund (7.93), HDFC Prudence (25.0), ICICI Prudential Dynamic Plan (5.61), ICICI Prudential Infrastructure Fund (3.19), ICICI Prudential Services Industries Fund (1.57), Reliance Diversified Power Sector Fund (5.97), Reliance Growth Fund (8.34), Reliance Vision Fund (1.85), SBI Magnum Global Fund 94 (2.44), SBI Magnum Sector Funds Umbrella-Contra Fund (2.12), Sundaram BNP Paribas Energy Opportunities (1.46), Tata Infrastructure Fund (4.58), Templeton India Equity Income Fund (2.45).
All funds are with growth option. Percentages are rounded up and hence approximates to a total 100%.
A small investment valued at Rs32,093 in Reliance Natural Resources is not included in the list above. I am 75 years old and have about Rs5 lakh in my bank account. Please suggest readjustment of portfolio, if warranted.
Also, I intend to go for SWP (systematic withdrawal plan) at Rs25,000 per month and wish to continue for the next 15 years. Do you think I can count on my mutual fund investments for this SWP for the next 15 years?
Your portfolio has a lot of diversified funds. Though the selection is good, you may add variety by adding mid-cap funds such as Sundaram BNP Paribas Select Mid-Cap funds, sector funds such as UTI Banking Sector Fund, and so on.
Also, you may choose to add Sundaram BNP Paribas Select Focus Fund in place of the HDFC Prudence Fund.
As far as counting on your mutual funds investments are concerned, it is important to know your requirements and needs for which you would need money in the future. Given the size and corpus of your investments, you can count on your investment for normal expenses.
However, for any special expenses, you would need other investment options also, as mutual fund investments are subject to risks.
The recent setback to mutual funds investors bears testimony to this fact that there is a big element of risk involved in mutual fund investments, especially those which are equity-focused.
In this case you may either have a more balanced portfolio by adding some balanced and debt-based funds or make investments in debt or fixed deposits so that you are able to crease out some risks of investment.
Simply investing in equity-based schemes cannot be a dependable source of income.
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