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Returns Not Guaranteed

Mutual fund returns are not guaranteed as fund performance varies over time…

I invested lumpsum amounts in Reliance Equity Opportunities, UTI Opportunities, HDFC Mid Cap Opportunities and DSPBR Equity. Is it good? Will I get 15 per cent p.a?Harish Agarwal

A comprehensive view of your portfolio shows a 94 per cent exposure to equity. The portfolio is very well diversified with the top holding (TCS) having a 3.17 per cent allocation. The top three sectors are Financial (15.55%), Engineering (10.35%) and Energy (10.24%). However, your portfolio does have an aggressive tilt with over half of it in mid- and small-cap stocks.
In terms of fund selection, your portfolio is good. However, mutual fund returns are not guaranteed and fund performance varies over time. A fund that has been a good performer today, may not top the charts a year down the road. Hence it is important to track the performance of the funds you invest in via its peers and its benchmark.
Finally, your investments have been done at one go, certainly not the best way to invest in mutual funds. Consider investing regularly and systematically in the funds that you have selected.

Scheme  Category  Rating  Ret* (%) 3-yrs
DSPBR Equity Equity: Multi Cap **** 17.16
HDFC Mid-Cap Opp Equity: Mid & Small **** 24.68
Reliance Eq Opp Equity: Multi Cap **** 23.78
UTI Opportunities Equity: Large & Mid **** 22.06
*Annualised Return as on July 29, 2011, Ranking as on June, 2011

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