How to reduce my total number of mutual fund schemes

I have a portfolio of 14 funds, but I think this is too many funds. I want to reduce it but I can't understand how to do it. So please help me to reduce the number of funds in my following portfolio. I am investing for 15 years time horizon, I am 44 now. My funds are 1) BSL Frontline Equity Fund Direct 5000, 2) ICICI Pru Focused Blue Chip Fund Direct 5000, 3) SBI Blue Chip Fund Direct 5000, 4) DSPBR Micro Cap Fund Regular 5000, 5) HDFC Mid Cap Opportunities Fund Direct 5000, 6) Sundaram Select Midcap Fund Direct 2000, 7) Franklin India Smaller Companies Fund Direct 5000, 8) Reliance Equity Opportunities Fund Direct 5000, 9) SBI Magnum Multicap Fund Regular 5000, 10) HDFC Growth Fund Regular 5000, 11) Reliance Small Cap Fund Regular 5000, 12) BSL Banking Financial Services Fund Direct 5000, 13) ICICI Pru Value Discovery Fund Regular 5000, 14) BSL Pure Value Fund Direct 5000. Thanks with regards, Awaiting for your quick reply by next post?

Jun 30, 2017 by Bishwanath Singh, Bamebari | Mutual Fund

Thanks for writing to us.

Your overall fund selection is good even though the total number of funds are high. We will still try to suggest you how to reduce the total number of funds and some suggestions on your fund selection as well. Please note the following –

1. HDFC Growth Fund – This is not a great performer compared to its peers in the large cap category. You may get out this fund and increase allocation to SBI Bluechip Fund and Birla Sun Life Frontline Equity Fund

2. BSL Pure Value Fund – There are better performers in midcap category. However, given your high exposure in mid and small cap category, you may consider investing more in large cap category. You may increase exposure in Birla Sun Life Frontline equity Fund, SBI Bluechip Fund and ICICI Prudential Focused Bluechip Equity Fund.

3. Reliance Equity Opportunities Fund – This is lagging in performance in the last 3 years and could not beat even the category returns in the 1 and 3 year period. You may shift from this fund to Reliance Small Cap Fund

With the above changes, we feel that your portfolio will have more stability and shall generate better returns in the long term. Rest of the fund selection is good and therefore, for the sake of reducing the numbers we should not disturb the on-going investments.

If you implement the above changes, your total number of fund will come down to 11 from 14.

Hope the above is helpful.

View All Queries

You haven't found the answer for your queries? Do post your queries to us.
POST A QUERY