Have I planned my MF investments according to my risk profile

My current SIP investments (Direct Plan - Growth Option) is Rs. 2,00,000/month as following: Large Cap: SBI Blue Chip Fund (G) 5000, Birla Sun Life Top 100 (G) 5000, Diversified Equity: Tata Equity P/E Fund (G) 5000, Franklin India Opportunities (G) 5000, Small & Midcap: Canara Robeco Emerg-Equities (G) 5000 - Invested for a year and Stopped now. (Money not redeemed from fund - Rs.1,30,000) Birla Sun Life MNC Fund (G) 5000 - Invested for 3 years and stopped now. Tranferred money from this fund to Birla Sun Life Balanced 95 Fund via STP on a monthly basis Mirae Asset Emerging Bluechip Fund (G) 20000, DSP BlackRock Micro Cap Fund (G) 20000, Franklin India Smaller Companies Fund (G) 10000, Balanced Funds: Tata Balanced Fund - Direct (G) 25000 - Stopped SIP last month (Money not redeemed from fund - Rs.2,77,000), HDFC Balanced Fund - Direct (G) - 30000, L&T India Prudence Fund - Direct (G) 40000, Birla Sun Life Balanced 95 Fund (G) 40000, ICICI Prudential Balanced Fund (G) 25000. With the above plan, 3% each will be in Large Cap and Diversified Equity, 25% in Small and Midcap and 68% in balanced funds. I have Fixed deposits in my parents name (Senior citizens) for about 70 - 80 lakhs. Initially my plan was to continue these investments for the next 4 years by withdrawing money from above FDs on these funds. However, after reading more about Mutual Funds and understanding Balanced Mutual Funds more in detail, I am thinking to alter my investment portfolio and invest lumpsum in balanced funds in the below manner and keep the money in these funds for next 4-5 years: HDFC Balanced Fund - Direct (G) - 40 lakhs, ICICI Prudential Balanced Fund (G) 40 lakhs. Having said that, I will stop all my current SIPs as mentioned above, but will not redeem money from the funds. I am a moderate risk investor and hence I want to invest lumpsum in Balanced Mutual Funds for a period of 4-5 years which should help me give good returns (atleast double my investments) is what I am hoping. I am currently 39 years and want to retire at the age of 45. Please suggest if this is the right mutual funds portfolio that I am thinking to change to and provide your valuable suggestion?

Jul 23, 2017 by PG, Hyderabad | Mutual Fund

Please note that we do not give mutual fund advise. We do create awareness about mutual funds and other investments and give suggestions based on investors queries received by us. If you want a proper financial advise you should either contact a mutual fund advisor or SEBI registered Investment Advisor in your city.

Coming back to your query, we found that your investment planning is well and it is in line with your risk appetite. As you will be stopping all your SIPs, there is no point suggesting any fund names. However, as you will not be redeeming the funds, you can consider few changes - Redeeming Tata Equity PE fund and invest the proceeds in a diversified equity fund. Birla Sun Life Advantage Fund and SBI Magnum Multi-Cap Fund could be two good choices. Similarly, switching from Franklin India Opportunities Fund to Franklin India High Growth Companies Fund could be a good move.

Your idea of moving your investments from equity / or put bank deposits in balanced funds is good. As balanced fund invest 65% in equities and 35% in debt instruments, it is the best fit for your risk profile. You have chose two schemes to invest in balanced funds both of which are among the top performing. However, you may also consider SBI Magnum Balanced Fund and DSP BlackRock Balanced Fund.

Like equities, for balanced funds too, your investment horizon should be minimum 5 years.

Thanking you for writing to Advisorkhoj.

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