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Building Mutual Fund Portfolio

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Equity schemes for short and long term

Question: I have a fund of 10k per month and want to create long term as well as short term. Short term = 5 years; Long term = 15 years. Need suggestion for ideal Mutual Fund. Based on recommendation, I will study further

Considering the time period of 5 and 15 years, we can go for Equity Mutual Fund Schemes.

For 5+ years time frame, Midcap Mutual Fund Schemes schemes tend to perform better.

Study schemes like HDFC Midcap Opportunities Fund, Canara Robeco Emerging Equities Fund etc.

For 15+ years time frame, you can begin with Smallcap Mutual Fund Schemes.

Some good schemes in this category are SBI Smallcap Fund, DSPBR Smallcap Fund, LT Emerging Businesses Fund etc.

As you get closer to your long term goal, move from Smallcap to Midcap and then to Debt Mutual Funds.

By doing this, you secure the growth that happened in all these years.

Failure to safeguard the growth in investment and staying in smallcap schemes even when the goal is close might put you into a high degree of risk.

MF Portfolio for a 10-year investment

I have sip in dsp black rock micro cap , mirae asset emerging blue chip, Franklin smaller company , ICICI Pru value discovery , Franklin prima plus. Last two names are not performing well but I will continue for now. I want to invest some additional sips .. What names u would suggest ? My sip will be for more than 10 yrs horizon

  • I think the composition is fair enough.
  • ICICI Pru Value Discovery (being multicap) and Franklin Prima Plus would give u cushion in market fall times. Despite that they giving 30% and 37% respectively in 1 year is a decent return i feel.
  • If you still have some spare money, add them as lumpsums to exisitng schemes rather than going for another newer scheme.
  • Adding more schemes would increase risk without adding more value for returns, my feeling
  • If you still want some names, Reliance Small Cap Fund - Direct plan - Growth option can be looked at. But remember, that this will increase smallcap weightage to your pf.
  • Let us review the scheme composition and performance again in 6-months time
  • Date: Feb 24, 2017

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