I am 39 years old. The debt component of my present portfolio is 10 per cent and equity 90 per cent. I plan to stay invested for at least 10 years. I currently hold DSPBR Equity, HDFC Top 200, Fortis Flexi Debt, Magnum Taxgain, Sundaram BNP Paribas Taxsaver and Tata Infrastructure. I have SIPs running in HDFC Top 200 and Sundaram Taxsaver. I wish to add a large-cap fund as a core holding. Would UTI Dividend Yield or Birla Sunlife Frontline Equity be a good addition?
–Dr Deepak S Ray
You already hold six funds in your current portfolio. You have a good mix of large-cap, tax-saving, thematic and debt funds. Although we are clueless about your quantum of investment in each of these funds, we still believe that you need not add a new fund to your portfolio. Your existing funds are already well diversified. In case you want to invest an additional amount via SIP, invest in DSPBR Equity which is a multi-cap fund. However, if you want to invest to save tax, increase the SIP amount in Sundaram BNP Paribas Taxsaver. Avoid further investment in Tata Infrastructure and limit your exposure to this fund to 20 per cent of your portfolio.
This article was originally published on September 13, 2010.
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