November 3, 2015

FSM In Media: How To Get A Balanced Mutual Fund Portfolio?
This chat transcript was published in on Tuesday, November 3, 2015.

by Dr. Renu Pothen

How to have a balanced mutual fund portfolio?

Guest: What is your view on the Debt Market and where should one put money for short term period of 1 year?

Dr. Renu Pothen: For a time period of 1 year, you can consider any of our recommended short term funds like Sundaram Select Debt Short Term Asset Plan or UTI Short Term Income Fund.


Guest: My MF are on swings..I mean thr is no sufficient gains even after 10 months..should I discontinue or wait till my 1.5 years ends for this fund.

Dr. Renu Pothen: Mutual Fund Investments have to be held for long term and then only you will be able to see sufficient gains from this instrument.

Guest: Respected Madam, i am 40, NRI, currently investing Rs. 500/- each as SIP in 3 funds (Axis LT Equity, Tata Balanced fund and Franklin India Prima Plus). Now i can invest additional Rs. 2000/- as SIP in each. So should i go for the same fund or should opt for another funds?
Dr. Renu Pothen: You can currently increase your investments into these funds. When you have more surplus, you can consider diversifying into other categories of funds depending on your risk profile,time horizonn and goals.
Guest: Can mutual funds give good returns in times of crisis.

Dr. Renu Pothen: Mutual Funds will help in achieving the goals if the investor has a long time horizon and is patient with his investments during market volatility.

bikasbaba: 1. My savings are still short from limit of Rs. 1.5 lakh under sec. 80C. If I increase money yearly (as usual) in SIPs, should I increase total money only in ELSS Fund until it touches the limit of 1.5 Lakh or to increase proportionately in all Large, Mid & Small and Diversify Funds including ELSS Fund. 2. ELSS Fund comes under which category - Large, Mid & Small or Diversify Funds. I have Axis Long Term Eq.

 Dr. Renu Pothen: If your goal is to save taxes then you should consider investing into ELSS. You can diversify into other categories of funds to create wealth for the long term.


Guest: I am an NRI and have account with I have lumpsum investment of Rs. 5 lakhs in ICICI Exports and other services fund and another 5 lakhs in ICICI Balanced fund. I completed 11 months now. Should I continue to hold it after one year? or do you suggest changing my portfolio through complete redemption and putting in other fund? or STP to any other funds? Your valuable suggestion is highly appreciated

Dr. Renu Pothen: All investments into equity funds should be held for atleast 5 years. If your portfolio has only these 2 funds, then my suggestion would be to include more funds depending on your risk profile and time horizon. This portfolio should include funds from different categories and it should be diversified across AMCs.


Bikasbaba: What are the importance of MF Star Ratings by CRICIL for long term investment. Almost all expert suggest a particular Larg Cap fund of ICICI despite it\\`s rating is 3 star.

Dr. Renu Pothen: We use our internal model to recommend funds to our investors. Hence we do not go with any star ratings given by the rating agencies on funds. ICICI Focused Bluechip Equity Fund has been one of our recommended large cap fund for 2015 as it cleared all the filters in our model.

Guest: Sir. I want to Invest a Lumpsum Amount of Rs.25Lakhs for a time horizon of 12years. Plz suggest good returns AMC and approximately how much i will get?

Dr. Renu Pothen: If your risk profile is aggressive and you have a long time horizon then you can consider the following funds. BSL Frontline Equity Fund, Kotak Select Focus Fund, Mirae Emerging Bluechip Fund and Reliance Small Cap Fund. You should put the current surplus into these 4 funds. After doing this investment, you can also start an SIP into these funds.


Guest: hi plz let me know any best tax mutual funds for period of 5 years

Dr. Renu Pothen: Axis Long Term Equity Fund or ICICI Prudential Tax Plan

Disclaimer:iFAST and/or its content and research team’s licensed representatives may own or have positions in the mutual funds of any of the Asset Management Company mentioned or referred to in the article, and may from time to time add or dispose of, or be materially interested in any such. This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any mutual fund. No investment decision should be taken without first viewing a mutual fund's offer document/scheme additional information/scheme information document. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Investors should seek for professional investment, tax, and legal advice before making an investment or any other decision. Past performance and any forecast is not necessarily indicative of the future or likely performance of the mutual fund. The value of mutual funds and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice


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