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Get A Core

Ideally, your portfolio should have a core holding that is a pure large-cap fund…

I have been investing since 2008 through SIP's in BSL Frontline Equity, HDFC Top 200, Mirae Asset Opportunities, Reliance Equity Opportunities, UTI Opportunities, ICICI Prudential Dynamic and Sundaram SMILE. Kindly advice if I can continue investing in these funds or make changes to my portfolio?
Kaustubh Hunswadkar

Fund   Category  Rating  3-year return (%)
BSL Frontline Equity Large & Mid Cap **** 12.39
HDFC Top 200 Large & Mid Cap ***** 13.72
ICICI Prudential Dynamic Large & Mid Cap **** 11.12
Mirae Asset Opp Large & Mid Cap ***** 17.8
Reliance Equity Opp Multi Cap ***** 18.88
Sundaram SMILE Mid & Small Cap *** 10.91
UTI Opportunities Large & Mid Cap ***** 18.75
Return as on September 13, 2011, Rating as on August, 2011

Your portfolio is not well diversified though you have seven funds from different fund houses. Five of these funds are from the same category. You do not have a core holding which is a pure large-cap fund.
Ideally, you should look at investing 70 per cent of your portfolio in core funds, which should be a mix of large- and large- and mid-cap funds. The satellite component of the portfolio can be made of mid- and small-cap funds, multi cap funds, sector and thematic funds.
Do not continue your investments in Sundaram S.M.I.L.E, which has been losing on performance in recent times. Limit your portfolio to five funds and continue investing in them regularly.



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