I have been investing in the following mutual funds through systematic investment plans (SIPs): Kotak Opportunities Fund, DSP Opportunity, DSP TIGER, Reliance Growth Fund and Reliance Vision, SBI Magnum Contra Fund, Fidelity Tax Advantage, Reliance Tax Saver Fund, HDFC Equity Fund, ICICI Infra, Birla Sun Life Equity Fund and HDFC Top 200 Fund for last few years. My time horizon is around 10-15 years. Am I on the right track, or do I need to reshuffle my portfolio? When we have SIPs we are committed for a certain time period, then how can we rebalance?
Your portfolio is good and since your time frame is of 10–15 years your portfolio seems to be on the right track and you need not do any changes because all the schemes are likely to show high returns due to their own portfolio structure. Moreover, their track record is also impressive. But for such large time frames you should keep reviewing your portfolio of schemes every year. I suggest you to continue with your SIPs and review them around October for any changes.
Could you guide me on the prepared investment planning for one of my clients, who is looking to invest Rs10 lakh with the time horizon of six years.
Your portfolio looks pretty balanced. However, I have two observations:
1) I do not understand your logic of expected returns in %-compound annual growth rate, especially for debt funds, with interest rates expected to dive.
2) This is not in tune with the changed stock market scenario. I would personally prefer the portfolio tilt more towards equity-based schemes. You should keep the time horizon for revising your portfolio as one year. The rest looks fine.
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