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Investors with large risk appetites can opt for an aggressive portfolio high on equities…

I am 44 and have sufficient assets in real estate but very little assets in other asset classes. I have a surplus of Rs 50,000 per month and have a large risk appetite. Based on your recommendations have short-listed in some funds. Please advise if these funds are aggressive selection to give high returns over a 5-7 year period?
- Vishwanath

At 44, you are a late entrant into equity investing. However, by selecting SIP investments in mutual funds, you have made the right choice and in the time frame that you are considering to invest, equity-mutual funds should offer you good returns. You have also selected some good funds, which with some changes should help you with high returns. However, the combination of funds that you have selected lacks the diversification and aggression needed from an aggressive investor. Also, by selecting three funds from the same fund house, you are compromising diversity in style.



Your Selection
Schemes  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
Franklin India Bluechip Large Cap ***** 14.2 14.39
DSPBR Top 100 Equity Large Cap **** 12.77 16.15
HDFC Top 200 Large & Mid Cap ***** 17.84 17.46
HDFC Equity Multi Cap ***** 19.55 17.38
HDFC Prudence Hybrid: Equity-oriented ***** 18.75 17.54
ICICI Pru Discovery Mid & Small Cap **** 22.3 13.78
Returns as on March 31, 2011 Ratings as on February 28, 2011    

We are suggesting an aggressive portfolio comprising six funds to you. Collectively these have 80 per cent equity exposure with funds that have a proven track record as well as promise. By investing regularly in these funds in a disciplined way, you will have a portfolio that is well diversified with funds that are aggressive and can earn you higher returns. Make sure you do invest regularly in these funds; you should also track its performance periodically.



Suggested Portfolio
Schemes  Category  Rating  3-yrs ret (%)  5-yrs ret(%)
AIG World Gold  International Fund Not Rated NA NA
BSL Dynamic Bond Ret-G    
Debt: Income **** 8.89 8.76 
DSPBR Micro Cap Reg-G Mid & Small Cap ***** 14.09 NA
Fidelity Equity-G Large & Mid Cap **** 14.69 15.32
HDFC Equity Multi Cap ***** 19.55 17.38
IDFC Premier Equity Mid & Small Cap **** 16.03 19.52
Returns as on March 31, 2011 Ratings as on February 28, 2011


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