Last year I had posted a few MF portfolios based on the risk taking ability of individual investors. With the changing political situation in the country, India is likely to be looked at favourably by the FII brigade once more as it offers the best growth possibility among the Emerging market economies. Chinese market offers better valuation right now but the focus is currently on growth and this is provided by India.
If you are an investor who is willing to take some risks in order to get higher rewards, the following MF portfolio may be the right one for you. This is suggested by an Analyst in the TV program of CNBC. The reason I am writing this post is because I agree with the choice of the funds. This portfolio will be specifically suited for goals in the next 10 years or so, though any greater duration will obviously work too.
The funds along with a short reason for selection are as follows:-
- Birla Sun Life Equity fund : It is a steady large cap fund and has done quite well over the years. This fund provides stability to the portfolio.
- Kotak Select Focus fund : Great stock picking ability of the fund manager over time.
- DSP Small & Mid cap Fund : Stellar returns over long period and the potential of such stocks doing well going forward.
- L & T Infrastructure Fund : Though Infra stocks have been poor performers this is all set to change based on the budget and development agenda. A risk worth taking.
- ICICI Banking & Financial Services fund : Clear growth industry of the future.
Once again, evaluate your risk taking profile before investing in these funds. However, the rewards can potentially be great and you may reach your goal much sooner than you have planned. If possible, buy these using market levels of Indices but, if you are uncomfortable doing so, do it through the plain vanilla SIP.
I will write a post on another MF portfolio with lower levels of risk soon.