Investment Advice on MF Portfolio

Investing in mutual funds (MFs) can be an excellent way to build a diversified portfolio and achieve long-term financial goals. However, selecting the right funds for your portfolio is crucial to maximizing your returns. Here is a detailed analysis and advice on managing your existing portfolio of mutual funds.

ICICI Focused Bluechip Fund

Large Cap

For those seeking steady growth with potential for higher returns, I would recommend the Birla Sun Life Frontline Equity Fund G over the ICICI Focused Bluechip fund. This large-cap fund has already outperformed its benchmark and the category averages for the past one, three, five years, and since inception. ICICI Focused Bluechip, being a newer fund, might exhibit volatility during severe market conditions such as the one in 2008. Therefore, considering its proven track record, Birla Sun Life Frontline Equity Fund G seems to be a more reliable choice.

HDFC Balanced Fund

Balanced

This well-rounded fund continues to provide consistent returns and has outperformed its benchmark and the category in the last few years. Victims of inertia often find themselves stuck with a fund that might no longer be the best choice. If the HDFC Balanced Fund meets your needs, it is advisable to continue investing in it. However, it is important to periodically review performance to ensure that the fund still aligns with your risk tolerance and investment goals.

LT Emerging Businesses Fund

Small Cap

This relatively new fund has shown promising performance. However, given the experience and established track record of other funds in the market, I would suggest investing in the Franklin India Smaller Companies Fund G. Alternatively, the Reliance Small Cap Fund G offers competitive long-term returns. Investing in funds that have been on the market for a significant period ensures more predictable performance.

Franklin India Build India Fund

Infrastructure

While the Franklin India Build India Fund is a good option, it is a sector-specific fund, which can be risky in the long term due to its concentration on a single sector. Instead, I would recommend investing in small and mid-cap funds, such as the Birla Sun Life Pure Value Fund G and the DSP Black Rock Micro Cap Fund G, both managed by acclaimed fund manager Vinit Sambhare. Though DSP Black Rock has halted new investment in its Micro Cap Fund for the time being, the Small and Mid Cap Fund G remains a strong option. These funds offer excellent performance and diversification, reducing your exposure to sector-specific risks.

DSP Opportunities Fund

Multi Cap

This fund is also part of a diversified portfolio. However, in comparison to an equity-oriented fund like the Birla Sun Life Equity Fund, the DSP Opportunities Fund and its benchmark have consistently underperformed over the past year, three years, and since inception. Therefore, while it remains a good fund, it might not be the best choice in terms of returns.

In summary, while your current portfolio includes good funds, some adjustments can help align your investments more effectively with long-term financial goals. Evaluating your current holdings and potentially diversifying into funds with proven records and a wider range of offerings can help optimize your returns. Happy Investing!