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The Core and Satellite Portfolio

Having a portfolio with funds for different financial goals helps in its overall efficiency

I am 23 year old and save around Rs 30,000 per month. I plan to invest Rs 25,000 every month in the funds listed below. As I don't have any short term liabilities, I want to build a huge amount in 10-15 years. Please suggest whether the funds I have selected can meet my requirement? If not please suggest me a better portfolio
- Prashant

Mutual funds  Amount (Rs)
BSL Dividend Yield Plus Rs 3,000
DSPBR Equity Rs 3,000
Fidelity Tax Advantage Rs 3,000
HDFC Mid-Cap Opportunities Rs 3,000
HDFC MIP Long-term Rs 3,000
ICICI Prudential Focused Bluechip Equity Rs 3,000
IDFC Premier Equity Plan A Rs 2,000
Reliance Equity Opportunities Rs 2,000
UTI Opportunities Rs 3,000

It's encouraging to see a 23-year old taking serious interest in mutual fund investing for the long-term. Investing in diversified equity funds is the ideal way to accumulate desired wealth over time, and you should be able to achieve this goal. You have a good selection of funds, however, you don't need to invest across nine funds to achieve this, especially when several of them have over-lapping investment themes.

We suggest, you go with a core and satellite approach, which will give your mutual fund portfolio the necessary stability and growth for long-term wealth creation. We have short-listed 5 funds for you from your existing set of nine. You should look at investing 70-80% in the core funds and the remaining in the satellite funds. This way the core will take care of stability and the satellite helps your portfolio earn the necessary push to improve the performance of the overall portfolio.



Core funds
Scheme  Category
DSPBR Equity Multi-Cap
UTI Opportunities Large- and mid-cap
Fidelity Tax Advantage Equity: Tax Planning
Satellite funds  
BSL Dividend Yield Plus Mid- and Small-Cap
IDFC Premier Equity Plan A Mid-and small cap


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