A durable portfolio can be built without investing in a thematic fund
13-Jan-2010 •Research Desk
I want to build a strong and healthy mutual fund portfolio with a time horizon of 7-10 years from now. I have selected the following funds:
1. HDFC TOP 200
2. Reliance Growth
3. Kotak Opportunities
4. Any MIP
5. Any Pharma fund
Is it wise to go with these funds or should I reassess my picks. If it is OK, kindly suggest a good MIP fund as well as a good pharma fund for my portfolio.
You may go ahead with your fund picks as the selected funds are either 4/5-star rated funds by Value Research and have a good track record.
For monthly income plan (MIP) funds, you may invest in Birla Sun Life Monthly Income or DSB Chola MIP.
You may skip the plan to invest in sectoral funds like a pharma fund because thematic funds have a narrow investment objective and are riskier than equity diversified funds. Try investing via systematic investment plans (SIPs).