Getting the right funds for your portfolio

By Morningstar |  31-08-18 | 
 

My investment horizon is 10 to 12 years. What is your view on this fund selection?

  • Mirae Asset Emerging Bluechip
  • Kotak Standard Multicap
  • Motilal Oswal Multicap 35
  • HDFC Small Cap
  • L&T Midcap Fund
- Shashi

They are well managed funds. Given your time horizon of 10-12 years your portfolio seems well balanced with a healthy mix of Small and Mid-caps as well as an element of Large caps. Do continue with your SIPs religiously, this should help you grow your investment portfolio substantially.

Our analyst’s views on Mirae Asset Emerging Bluechip.

I am moderately aggressive. This is what I have selected for a long-term portfolio. Your views?

  • SBI Blue Chip
  • Motilal Oswal Multicap 35
  • ICICI Prudential Balanced Advantage
- Sunip

Given your risk appetite, the funds you have selected appears to be a good starting point.

SBI Bluechip is a large cap fund and is managed by an experienced manager Sohini Andani. The fund has a noteworthy track record over longer-time frames. This fund has a Morningstar Analyst Rating of Bronze and can continue to be a part of your portfolio. Given its large cap focus, SBI Bluechip could be a core holding in your portfolio. Read the analyst view here.

Motilal Oswal Multicap 35 is a concentrated strategy. The fund typically invests in 25-30 stocks and the top 10 holdings account for 55-70% of the portfolio. Hence the fund’s investment approach is aggressive in nature and is fit for a high risk-high return investor. Such funds can experience above average volatility if the manager’s call on few stocks go wrong given high stock concentration. If you are fine with the fund’s investment proposition you can continue in it, however the allocation to this fund could be lower than the other two funds.

Else you can also choose a less aggressive fund from the multi-cap category

ICICI Prudential Balanced Advantage is a good fund to invest in. The fund offers a rather differentiated investment proposition, with the aim of reducing the overall risk in the portfolio. The fund is jointly managed by Sankaran Naren and Manish Banthia, both of whom are experienced managers in the equity and fixed income segment. This fund can continue to be a part of your portfolio if you are comfortable with its investment proposition, which aims to generate returns that are higher than a FD but without the additional volatility/risk.

How do you rate this fund ICICI Prudential Multi Asset Fund?

- Mohan

ICICI Pru Multi Asset Fund (erstwhile ICICI Pru Dynamic Plan) used to invest into a mix of equities and fixed income which was dynamically managed as per the valuations of the markets. The fund was largely tilted towards equities. Under the new mandate, the fund will invest into a mix of equity, fixed income and gold, but they continue to have a larger allocation towards equities. The fund has a tilt towards value stocks.

We rate this fund highly due to the Sankaren Naren at the helm. Naren is as extremely proficient manager who has been managing this fund since inception and has a distinct skill of uncovering value opportunities. However, the value tilt requires significant patience as value stocks can underperform growth stocks for lengthy periods.

You can read the analyst view here.

I am concerned with the performance of Franklin India Focused Equity which is underperforming both category and benchmark from 2.5 years (though the extent of under performance is small). Even the top holdings like corporate banks and telecom doesn't give me conviction. Need suggestion.

- Nuthan

Franklin India Focused Equity is an aggressively managed focused strategy that takes aggressive bets across 30 stocks with a multi-cap focus. It is important to acknowledge that the fund has gone through a bout of underperformance due to its overweight position in Telecom stocks as well as stocks like Tata Motors. We don’t think inherently anything has changed with the strategy and expect the fund to bounce back.

You can read the analyst's view here.

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bhagwan bhangdia
Jan 18 2019 05:09 PM
can u suggest me ELSS funds which can create good retirement plan. i want to invest 10000 pm for 20 years.my age is 33years.
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