I am investing Rs 2,000 each in Reliance Diversified Power Sector, Reliance Growth, HDFC Equity and HDFC Growth since July 2010. Recently I have added DSPBR World Gold Fund. I have additional Rs 4,000 a month to invest; which new fund can I invest in?
- Rajesh Sheth
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Your portfolio of five funds lacks focus. You have invested in two multi cap funds, a mid- and small-cap fund, a thematic fund and a world gold fund. Without doubt, the fund selection is aggressive and makes your portfolio prone to risks, especially with the absence of core funds. Have a clear time frame with which you are investing to follow an investment objective like the core and satellite approach. Your current portfolio is more skewed to a satellite holding. You should consider the additional sum that you have to be invested in a large-cap fund to form the core holding; look for a fund such as Franklin India Bluechip or DSPBR Top 100 Equity. Both the funds are highly rated and have a proven track record and performance history to form good core holdings. Continue investing regularly in your current holdings and evaluate its performance from time to time.
This article was originally published on June 13, 2011.
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