Mutual Fund Portfolio..Am i on right track or following wrong path?

POSTED BY anindya bhattacharya ON June 12, 2011 11:26 pm COMMENTS (3)

Mutual Fund Portfolio..Am i on right track or following wrong path?


I am 25 years old and below is my mutual fund portfolio

1) UTI Dividend yield -1000

2) Reliance Growth-1000

3)ICICI Prudential discovery-1000

4)HDFC Top 200-1000

5) HDFC Tax Saver-2000

6) BSL Front Line equity-1000

7)DSP Blackrock Equity-1000

I am investing for last one year in these mutual funds and i wish to carry on with these for a long time atleast 5-7 years.

Every year I also plan to increase SIP in atleast 1/2 funds[Like i recently increased SIP in HDFC tax saver from 1K to 2K]. thats why i have kept 7 funds in my portfolio and decided never more than 7 in total.Apart from this, i invest about 30K per month in direct equity based on whatever i understand about the market[no tips no advice only what i think is right].

Recently my friends are saying i should not invest so much in equity and should rather invest in debt products.I know that equities are must for long term but is my portfolio alright?My friends have created some doubts in my mind.

Can somebody please help me?



3 replies on this article “Mutual Fund Portfolio..Am i on right track or following wrong path?”

  1. ELSS will not give tax benefit under DTC (Direct Tax Code) which will probably be in force next year..Make the most of it..

  2. anindya bhattacharya says:

    Hi Jagadees,
    Thanks a lot for your response :)..I would try to follow your advice on stocks and MF..
    And thanks to Jagoinvestor and Subramoney I have first taken a term insurance of 30L , mediclaim of 5L and an emergency fund of about 1.2 L before making any other investments.

  3. Jagadees says:

    Its good to see you started your equity investment in young age and intended to continue for long term. First make sure you have done few things like emergency fund, term insurance, family health insurance and proper asset allocation plan. Then you can invest in equity in long term view without any upper limit.

    MF portfolio:
    If i were in your place, i would prefer a concerted portfolio of 4 funds for 7k rather than having 7 funds with duplicated investment mandate. My choice is
    1. HDFC top 200
    2. UTI dividend yield
    3. ICICI pru discovery
    4. HDFC tax saver.

    Direct equity:
    Its heartening to know that you are following a Do-it-yourself strategy rather than depending on tips/advice. Few suggestions from my side (a newbie like u :))
    1. Have an investing guideline/criteria/process.
    2. Have a investment diary and record all your thought process including rejected ideas.
    3. Read more and more value-investment oriented books.

    I would say have faith in your analysis and do with conviction by ignoring all the noises both in media and friends circle.


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