Build a diverse portfolio with 90 per cent equity exposure
28-Jan-2011 •Research Desk
I wish to invest Rs 10,000 monthly in MFs through SIP. Currently, I invest Rs 6,000 a month in Reliance Growth Fund, Reliance Diversified Power Sector and Reliance Equity Opportunities through SIPs
Investing regularly through systematic investment plans in equity mutual funds is the right step towards long-term wealth creation. However, you lack the necessary discipline in building a portfolio. Your portfolio has an AMC bias wherein all the funds are from Reliance Mutual Fund, which can lead to potential problems. You need a well-diversified portfolio which does not need frequent intervention in managing them. You can look for an aggressive portfolio with 90 per cent equity exposure and the rest in debt. This can be achieved by building a portfolio of funds made from AIG World Growth, Birla Sun Life Dynamic Bond, DSPBR Micro Cap, Fidelity Equity, HDFC Equity and IDFC Premier Equity Plan A. This portfolio not only offers you superior diversification, it also has funds that are aggressive and can earn you higher returns. Make sure you do not invest regularly in these funds; you should also track its performance periodically.