Investing For The Long-term | Value Research Good fund selection is the first step towards creating wealth over the long-term…
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Investing For The Long-term

Good fund selection is the first step towards creating wealth over the long-term…

In January 2011 I started 4 SIPs for Rs 5,000 a month for the next 10 yrs. Please comment on this portfolio and suggest on more fund o invest Rs 5,000 monthly SIP
- Prashant Magdum



Schemes  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
Franklin India Bluechip Large Cap ***** 12.4 14.32
HDFC Top 200 Large & Mid Cap ***** 16.09 17.4
IDFC Premier Equity Mid & Small Cap **** 15.96 20.61
HDFC Equity Multi Cap ***** 18.36 17.09
Returns as on March 25, 2011 Ratings as on February 28, 2011

You have made a god selection of funds across categories that offer you the much desired diversity in style and number of funds. By adopting in a core and satellite approach, you can benefit from the power of compounding that SIP investments offer over the long-term and also gain from the diversity and balance that the portfolio gets from such an approach. This way you will get both the stability and growth for long-term wealth creation. Ideally, you should look at investing 70-80 per cent in core funds such as large- and large- and mid-cap funds and the remaining in satellite funds.

Currently you have a 50-50 allocation; you should consider investing the balance Rs 5,000 that you plan to invest in another large-cap fund such as DSPBR Top 100 Equity. And do make it a point to review and evaluate the performance of your fund holdings at least once a year to check its progress and make any changes to the holdings if necessary.




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