I am investing in HDFC Equity, HDFC Top 200, HDFC Balanced, Reliance Banking, Reliance Equity Opportunities and Reliance Gold Savings. Should I continue with these funds?
- Piyush
While you have chosen some good funds to invest in, they don't combine together to form a good portfolio. Firstly, there is a great amount of complementarity between the portfolios of the three HDFC funds that you hold. Nearly 60-65 per cent of the stocks that HDFC Equity and HDFC Top 200 invest in are the same. You should have only 1 of these 3 funds in your portfolio. The other thing is that you shouldn't a sectoral or thematic fund in your long-term portfolio. Such funds are opportunistic investments, which is why a passive, long-term investor shouldn't be invested in them.
This article was originally published on March 06, 2013.
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