Planing for MF Portfolio

POSTED BY Rajendran ON November 19, 2010 10:38 pm COMMENTS (3)

I am planning to build my MF portfolio like the following. ( I was going thro’ lot of articles and questionnaire and came up with this split up).

Core Folio (75%)

1) 1 Large cap Fund (34%)
2) 1 Large & Mid Cap Fund (33%)
3) 1 Multi Cap Fund (33%)

Satellite Folio(25%)

4) 2 Mid & Small Cap fund (50% each)

Is this is fine or does this require any more tweaking… please drop your view once the allocation is fine. I will try to narrow down the fund in each category…

3 replies on this article “Planing for MF Portfolio”

  1. Indrajyoti indra says:

    I would say, for long term and if you have time in you site then,

    1 Large Cap Fund – 20%
    1 Large-Mid Cap Fund – 25%
    1 Multi Cap Fund – 25%
    2 Mid-Small Cap Fund – 25%
    1 Sectoral – 5%

  2. Ramesh Mangal says:

    Core and Satellite division is more of a different goal setting. For your long term (say retirement) you have a core and for another goal 10 years from now, you have a satellite or multiple satellites.

    If you have a long term goal of maximizing your Money Growth, I would advise to go for an all-equity or predominantly equity (70-90%) allocation. The suballocation can be done in any way. Eg. simply keep 25% each in Large Cap, Large and Midcap, Multicap and Mid & Small Cap of your equity allocation. Rest of the money can be kept in a Bond Fund.

    You can also mix a Equity-oriented Balanced fund and a Debt Oriented Balanced Fund in the above combination.

    Regarding the gold part, I am of the opinion that over long periods of time, gold does not provide the kind of appreciation that equity or even debt provides. The recent bull trend in gold cannot be considered to continue for long periods. On the contrary, it should signify that it is time to be out of it. 😉

  3. Allocation and selection of funds depends on one’s risk taking ability. For an aggressive long term investor, I would perfer the following:

    1 Large Cap Fund – 20%
    2 Large-Mid Cap Fund – 25%
    1 Multi Cap Fund – 30%
    1 Mid-Small Cap Fund – 15%
    1 Gold ETF – 10%

    This is the ratio that I am trying to achieve for my own portfolio. However, as we all know, portfolio requires periodic reviews for performance and investor’s risk ability. The ratios I suggested may or may not fit for your profile. Try to identify your profile and then decide on the ratios and fund selection.

    When we are young, we tend to invest more in equity. Those who are nearing retirement may prefer safe guarding their money in debt funds or FDs.

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