Which are the best mutual funds in my portfolio

I checked your mutual fund portfolio and have the following suggestions to make.

1. Given the current market levels, I think you objective should be two – First, reduce the exposure of mid and small cap funds as the valuations are at all-time high. Secondly reduce the rsik of the portfolio by having some more allocation in balanced funds as balanced fund have around 65% exposure in equities.

In this context, following can be suggested –

Switch DSP BlackRock Small and Midcap Fund to DSPBR Opportunities Fund

Switch HDFC Midcap Opportunities Fund to HDFC Balanced Fund

Switch 50% each from ICICI Prudential Value Discovery Fund to ICICI Prudential Focused Bluechip Fund and ICICI Prudential Balanced Fund but let the SIP continue in this Fund. You can switch all the balanced units, say as on 31st December 2016 so as to avoid capital gains taxes.

Likewise, reduce the exposure in Sundaram midcap fund and switch to Sundaram Rural India Fund but continue the SIP

2. Following funds can be reviewed for redemption due to non-performance or availability of better performing funds in the respective categories –

UTI Multicap Fund, UTI Opportunities, UTI MNC, UTI Pharma, UTI Equity, DSPBR Top 100 Fund and IDFC premier Equity Fund.

3. Switching of all units can also be suggested from SBI Emerging Businesses Fund and SBI Magnum Taxgain fund (if the lock-in period is over) to SBI Bluechip Fund

4. Reducing exposure in banking sector makes sense as majority of equity mutual fund schemes have banking sector stocks in them. Therefore, switch from Reliance Banking Sector Fund to Reliance Top 200 Fund and Sundaram Financial Services Opportunities Fund to Sundaram Select Focus Fund can be considered.

5. With regards to few HDFC funds, I have following to suggest – HDFC Top 200 Fund and HDFC Equity Fund is not great performers, therefore, they can be considered for redemption.

6. HDFC Balanced Fund is a better Fund, and therefore, switching from HDFC Prudence Fund to this fund makes sense.

7. From the redemption proceeds received, investing in large cap funds like Kotak Select Focus Fund and SBI Bluechip Fund can be suggested. Some investments may be allocated to Mirae Asset India Opportunities Fund as it is a top performing diversified equity fund.

8. With regards to the new investment, you may go for STP instead of lump sum. You can consider doing STP to large cap funds, diversified equity funds and balanced funds which you already have in the portfolio. STP (weekly) for 18 months can be suggested as markets may remain volatile due to forthcoming events, high valuation etc. Matching liquid funds should be chosen from the AMCs in whose balanced fund, diversified equity fund or large cap fund you are deciding to invest in.

Hope the above helps!

You can check the following in the above context –

https://www.advisorkhoj.com/mutual-funds...

https://www.advisorkhoj.com/mutual-funds...

Kindly note that the suggestion we give on this website or through email is in the general interest of the public/ visitor to our website. If you want to action on the suggestions you must consult a qualified financial advisor. We also suggest that you must have a long term view when investing in mutual funds and it must be according to your risk taking ability.