December 21, 2018

Recommended Portfolios For 2019
A brief update on our Recommended Portfolios for 2019

by iFAST Research

 Recommended Portfolios for 2016

We have updated our recommended portfolios for 2019 in line with our practice of revamping them when we change our Recommended Funds list. We remain neutral on India and hence our asset allocation remains the same for the next year as well.

A careful observation of our portfolios shows that our equity allocation has not really changed except in the case of mid cap, infrastructure and global categories. This is because our recommended funds of 2017 in these categories did not make it to the list this year – either because they did not clear the filters of our model, or because of the change in their classification as per the new SEBI mandate. However, there is a significant change in the debt allocation as all the 2017 funds included in the portfolios did not clear the filters in our model.

We had been including an ultra short duration fund in our portfolios as a liquidity cushion and also with the view that Investors can use this surplus to enter the equity markets whenever there is a correction. This year, we have decided to substitute the ultra short duration fund with a liquid fund as we thought that this category would be more suitable to meet the above requirements.

In terms of investor action, we would like to reiterate what we had written in the note on the Performance of our Recommended Portfolios from Nov 16-Oct 18:

"Investors should not get nervous and start pressing the panic button. As we wrote in our Research Note on iFAST Recommended Mutual Funds 2018-19, "An exit (of a fund) from the list does not imply an exit from investor portfolios as well. This table should give confidence to our investors that our model may leave out funds if they don't clear the filters; however, a few years later the same funds can be back in the list. In cases where we do revise our opinion of a fund and are no longer comfortable holding onto them in any investor portfolio, we will definitely update the investors. But if there is no communication from our side, investors can continue with their existing SIPs and lumpsum investments into the funds."

We maintain that all the funds that the model did not clear should still be held on to, as we believe that they are going through a short phase of volatility and their exit from the current list of Recommended Funds may not be final.

Table 1: Portfolio Fund Allocation Changes

Category Fund Name Conservative Moderately
Balanced Moderately Aggressive Aggressive Moderately Aggressive (Global) Aggressive (Global)
Liquid   Reliance Liquid Fund 10 10 5 5 2 5 2
Short Duration HDFC Short Term Debt Fund 30 20 15 10 4 10 4
Corporate Bond   Aditya Birla Sun Life Corporate Bond Fund 35 30 20 - - - -
Credit Risk  Franklin India Credit Risk Fund 15 10 10 15 4 15 4
Large Cap  Aditya Birla Sun Life Frontline Equity Fund - - - 15 15 5 5
ICICI Prudential Bluechip Fund 5 10 20 - - - -
SBI Blue Chip Fund 5 10 - - - - -
Multi Cap  Kotak Standard MultiCap Fund - 10 20 15 15 5 5
Midcap  L&T MidCap Fund - - 10 20 30 15 20
Small Cap  Reliance Small Cap Fund - - - 10 15 10 15
Banking  ICICI Prudential  Banking &
Financial  Services Fund
- - - 10 10 10 10
Infrastructure  Kotak Infrastructure & Economic Reform Fund - - - - 5 - 5
Global  Franklin India Feeder-Franklin U.S.Opportunities Fund - - - - - 15 15
Franklin Asian Equity Fund - - - - - 10 15
    100 100 100 100 100 100 100


The Recommended Portfolios for 2019 have been revamped on December 14, 2018. Our factsheets will reflect the changes in the portfolios from next month onwards. We advise Investors to take an exposure into the portfolios depending on the risk profile, time horizon and goals of their investors.

Happy Investing!!!

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 scheme information document including statement of additional information. 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. Please read our disclaimer on the website.Please read our disclaimer in the website.

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