An aggressive MF portfolio

I am generally interested in good TV programs on personal finance and the one program which I like for the MF space is Investor’s Guide on ET Now. The anchor Fay D’souza is quite articulate and reasonably knowledgeable. She has Dhirendra Kumar of VR Online as the expert in the show, whose insights and analysis are worth listening to.

One of the useful things I find in the program is their construction of different types of MF portfolios, depending on the temperament and life stage of the investor. They have 5 different portfolios and have simulated an investment over the last seven years, putting a monthly amount of 10000 Rs in each of them. The portfolios are reviewed annually and changes made to them if needed.

In this weeks program there were some changes carried out by Dhirendra Kumar in the Aggressive portfolio. This is particularly suited to an investor who is willing to take some risks with his money, is able to withstand volatility and is having a long time horizon of 15 years and more. The suggested funds with their weights are as follows:-

  1. 10 % in Birla SunLife Dynamic Bond fund
  2. 15 % in DSP BR Micro cap fund
  3. 15 % in Franklin Smaller companies Fund
  4. 20 % in ICICI Value Discovery fund
  5. 20 % in Mirae Asset Emerging Blue Chip fund
  6. 20 % in Franklin High growth companies fund

In my opinion this is a very well constructed portfolio. The focus is clearly on mid and small cap funds which makes sense, given the long time horizon available. Also, the multi cap funds in the portfolio will have a fair share of large cap funds.The Dynamic bond fund will provide some dampening effect on the volatility which is going to take place over time. I think it is quite possible to achieve annualized returns of more than 15 % here.

However, if I were to construct an aggressive portfolio of MF schemes then I would make some changes to this. Firstly, I believe in keeping my Debt and Equity portfolio separate and therefore will not have the Dynamic bond fund.Also, I believe  having an international fund will provide some useful diversification. Thus my portfolio will look like this.

  1. 20 % in ICICI Value Discovery fund
  2. 20 % in Mirae Asset Emerging Blue chip fund
  3. 20 % in DSP BR Micro cap fund
  4. 15 % in Franklin Smaller companies fund
  5. 15 % in Franklin Blue Chip fund
  6. 10 % in ICICI US Blue chip fund

I will however, not invest in these funds through the SIP mode. My investments will be 4-6 times a year, based on the markets. Read my blog posts under the MF category if you are interested in knowing more about this.

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7 thoughts on “An aggressive MF portfolio

  1. Why go for MFs when you can structure your own portfolio with suggested scripts (for different age groups and risks) from sites like ICICI Direct – you save entry/exit loads and no capital gains tax after one year of investment.

    Liked by 1 person

  2. Hi Mr Roy,

    Can you please share your view on below portfolio. I am trying to come up with a long term but aggressive:
    1. Kotak Select Focus Fund – Regular (G) 19%
    2. Birla SL Frontline Equity (G) 10%
    3. Birla SL Equity Fund -Direct (G) 19%
    4. ICICI Pru Balanced Fund (G) 14%
    5. Franklin India Smaller Companies Fund 10%
    6. DSP-BR Micro Cap Fund – RP 19%
    7. Mirae Emerging Bluechip Fund 10%

    Thnx & Rgds
    -Nadeem

    Like

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