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An Ideal Portfolio

It’s good to have a concise portfolio with fewer funds, around one from each fund house

I invested Rs 2,000 through monthly SIPs in DSPBR Equity, DSPBR Microcap, ICICI Pru Infrastructure, Reliance Equity Opportunity, Sundaram Select Midcap and IDFC Premier Equity; Rs 3,000 in HDFC Top 200 and Rs 5,000 in ICICI Pru Focused Bluechip Equity Ret fund. Is the portfolio well diversified? Do I need to make any changes to the holdings?
—Ajay Negi

Current Portfolio
Scheme  Category  Rating  SIP (Rs)
DSPBR Equity Multi Cap **** 2,000
DSPBR Micro Cap Mid & Small Cap **** 2,000
HDFC Top 200 Large & Mid Cap ***** 3,000
ICICI Pru Infrastructure Infrastructure *** 2,000
ICICI Pru Focused Bluechip Eq Ret Large Cap ***** 5,000
IDFC Premier Equity Mid & Small Cap ***** 2,000
Reliance Equity Opportunities Multi Cap ***** 2,000
Sundaram Select Midcap Reg Mid & Small Cap **** 2,000
Rating as on 31st July 2011

You can reduce the number of funds to around six. Have just one scheme from one fund house. Though all funds are well rated, the portfolio is high on the risk quotient with 60 per cent of the investments going into mid- and small-cap, multi-cap and infrastructure funds, which typically form the satellite component of a well diversified portfolio.

Suggested portfolio
Scheme  Category  Rating  SIP (Rs)
DSPBR Equity Multi Cap **** 3,000
Franklin India Bluechip Large Cap ***** 5,000
HDFC Top 200 Large & Mid Cap ***** 3,000
ICICI Pru Infrastructure Infrastructure *** 2,000
ICICI Pru Focused Bluechip Eq Ret Large Cap ***** 5,000
IDFC Premier Equity Mid & Small Cap ***** 2,000
Rating as on 31st July 2011


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