When will Value Research Premium service be made available? Also is this a good time for consolidating portfolios? I wish to reduce my portfolio that currently has 10 funds to four funds, one each from multi-cap, contra, mid-cap and hybrid categories.
- Anand Patel
We are working very hard to launch our premium service. Several features are undergoing rigorous testing and we should be ready to hit the floor in a few weeks. I understand that many of you have been eagerly waiting for the launch. However, we are a little behind our schedule, as the launch of the new Value Research site kept us busy, followed by this pandemic, which also had a minor impact on our journey towards the launch of the Premium service.
Coming to the fact that whether now is a good time to consolidate your funds, I think yes, it is a good time to consolidate your investments now. This is because at the moment there would not be much capital gains on your investments and hence, you would not have to worry about their tax implications. So, you can start consolidating your investments. However, take care of any exit load that may be applicable on your current investments.
The plan of diversifying your investments across four categories of funds sounds good, as three-four funds provide apt diversification to one's portfolio and help in tracking the performance of your portfolio better. Just make sure that the four funds are of different fund houses. It is generally observed that different funds within the same fund house have somewhat similar equity portfolios. Hence, funds spread across different fund families help in having additional diversification, as different fund houses tend to have different management styles, thereby providing additional diversification.
Also, adding one contra or value fund to your portfolio can also prove to be a good bet. These funds have had a rough patch for the past few years and when the market shall turn, which it eventually will, these funds can deliver superior performance. However, having said that, these funds have surely tested investor's patience.