MF portfolio realignment – my plan

If you are a regular reader of my blog you will know my 3 portfolio strategy for investment by now. I have portfolios in Debt, Stocks and MF. In the initial part of my working life I invested in mostly debt, the mid part was largely used to build up the stock portfolio and 2008 onward till now it has been largely MF. Of course, once I decided about giving up my regular corporate career in 2012, I boosted my debt portfolio significantly.

Over the years I have bought several MF schemes, initially with one time investments, thereafter with SIP and now back to investing at the right times. I have therefore collected a large number of MF schemes and in several of these the amounts invested are not very significant. The ones where I have done SIP obviously have some decent amounts, but even here there are several funds as my portfolio had changed over my 7 years of SIP.

In the past whenever the markets have gone up significantly, I have thought about cleaning up my MF portfolio. Somehow or the other it has never happened and I am stuck with a multitude of MF schemes, most of which I do not really want to keep. This weekend, I took a look at my MF portfolio after a long time and these were my observations.

  • I am currently investing in 4 MF schemes which are as follows. My plan is to continue investing in these for the future, at least till I have active income to do so:-
    • ICICI Focused Blue chip fund
    • ICICI Value Discovery Fund
    • HDFC Mid cap opportunities Fund
    • DSP BR Mid and small cap Fund
  • There are some other funds where I have significant investments but have dropped now. I will be keeping these for now but may want to sell them off during any annual review that I undertake. Future investments in these are unlikely:-
    • HDFC Top 200 Fund
    • IDFC Premier Equity Fund
    • Birla SunLife Frontline Equity Fund
    • DSP BR Equity Fund
    • Sundaram Select Mid cap Fund
    • Franklin India Blue Chip Fund
    • UTI Dividend yield Fund
  • There are some Close ended funds such as the ICICI Value Series Funds. I had invested in these as they give regular dividends which is useful to me. I will either continue with them or shift to other similar funds. To give readers an idea, ICICI Value Series 2 has given an XIRR of 30 % plus in the 3 year investment period.
  • Everything else, I want to get red of ASAP.

How do I plan to go about it? I have a feeling that next few weeks may be the best chance if Nifty goes to 9300 etc. Once the quarterly results  are through and the global geopolitical situation worsens, our markets are very likely to down to 8500 or even below that on the Nifty. Once I sell all my disposable MF, I will just be in cash and wait for the right opportunity.

What will I be buying with the cash I get? Well, one option is to invest in some of the stocks I had outlined in the earlier post. I am sure that if I buy these at Nifty levels of 8500 I will definitely see significant returns over the next 3 years etc. Another option will be to space out the stocks and invest in my 4 MF’s .

Unless the NIfty shows a rising trend due to a strong quarterly results, I am finally ready to pull the trigger on this. Even if it keeps rising, I will still sell when it reaches 9300, as I do not believe that is a value at which the Nifty can sustain itself.


11 thoughts on “MF portfolio realignment – my plan

  1. what allocation are you following 25% each?
    i like your fund choice 1 fund from each cat…
    would you like to comment on my pf
    1)ICICI Value Discovery 2) Mirae Asset emerging 3)Franklin India Smaller 4) QTLEF


  2. If this is your long term portfolio, is it right to try and time the market?
    Nifty can always go to 10000 instead of 8500. (and correct to 9400 from there for that ‘much needed correction’)


    • It is not an issue of timing the market, you should always buy equity based on market conditions, never on a monthly basis.
      As for the Nifty I do not think it will go to 10000 anytime soon, maybe not in this FY at all. Also, do you really want to buy through SIP at these and higher levels of Nifty?


  3. Any specific reason you are holding ICICI Pru Focussed while selling off BSL Front Line Equity? Currently I have invested in these two funds equally but latest analysis as per me looks like BSL is better, so kind of confused whether we should keep both or let go one and focus on one among these two?
    Secondly, IDFC Premier Equity has performed very bad in recent past but as Anup Bhaskar has taken charge, again in two minds whether to sell it off and choose a different fund? Your suggestions please. Thanks.


    • There is little to choose as a large cap fund between these two, I like ICICI more due to the stock choice.

      There are several better funds than IDFC so do not have that as your portfolio choice. In case you are holding it for long you may continue to do so now. Do not make fresh investment in it.


      • Thank you. Yes, I am no longer making fresh investment in IDFC. I started investing in IDFC from early 2014 onwards & mostly in SIP & stopped in end of 2016. Till date, it is showing ~16% XIRR. And I have found better funds in this category e.g. Mirae Asset Emerging Bluechip, HDFC Mid-Cap Opportunities. in fact I have already started SIP in Mirae Asset. So, I am thinking and if you can please help me in decision making
        1. Should I redeem IDFC completely and invest that amount in the other two funds I mentioned above?
        2. Should I redeem 50% (because market is very high now) & keep rest 50% trusting Anup Bhaskar might turn it around.

        Any help is highly appreciated. Thanks


      • If you are clear about your current portfolio selection it will make sense to redeem it partly now and the rest when Nifty hits 9500 levels, which may happen in this year.


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