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
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.