A portfolio tilted to one fund house

By Morningstar |  29-06-18 | 
 

My father has invested in four funds- ICICI Prudential Value Discovery Fund, Franklin India Bluechip Fund, Franklin India Equity Fund and Franklin India Smaller Companies Fund.

Should he stay invested in these funds or shift?

- Darshan

The decision on whether to stay invested or not depends on numerous factors. Will the individual be needing the money in the near term or not? What was the rationale when the fund was opted for, and does it still hold?

All the above funds are very good offerings in their respective categories. And all have been rated by our analysts. Do take a look at the brief analyst notes.

ICICI Pru Value Discovery: Silver Rating

Franklin India Equity: Gold Rating

Franklin India Bluechip: Gold Rating

Franklin India Smaller Companies: Silver Rating

(The positive ratings are Gold, Silver and Bronze. A Neutral rating indicates that the analyst does not believe the fund is likely to deliver standout returns but also isn't likely to significantly underperform. The Negative rating is at the bottom of the ladder and positions the fund as an inferior offering when compared to its peers.)

What stood out in the above list of funds was that three funds are from one single fund house. Do remember, diversification is not only across fund styles and market cap, but it does make sense to diversify across fund houses too.

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