My Mutual Fund Portfolio – Disclosure

We have been sharing our knowledge and opinions for our readers on various topics. One of very popular questions asked by readers through email is “Hey, why don’t you disclose your portfolio and mutual funds you invest in”.

It goes without saying that everyone has become bit reserved after SEBI guidelines. However, we’re only analyzing mutual funds and don’t force or influence buyer decisions.

Every decision should be done after consulting your financial planner or doing own due diligence. What we make are not recommendations to buy or sell.

Who should invest in mutual funds?

Direct Equity investing is for those who have a passion for equity investing. Mutual funds are ideal investment tools regulated by SEBI and hence safe for retail investors.

But that does not mean they’re risk free. We have already discussed the best performing mutual funds  on our blog.

Following are people who must use mutual funds:

1. Regular job workers with not enough time to devote to research stocks.
2. New investors learning the ropes of market.
3. People who have not seen one full cycle – ie., one bear and one bull market with consolidation.
4. Investors with small amounts and looking to diversify
5. People who want to create long term wealth.
6. Investors who want to diversify among asset classes.

My mutual fund portfolio

Debt funds, liquid funds, Tax Free Bonds usually used for the debt portfolio at personal level. I would prefer balanced funds and ELSS funds if all my investments were through mutual funds.

But since we deal in direct equity , I do not hold balanced funds in my personal portfolio.

Debt / Liquid Funds:

1. Axis Liquid Fund
2. ICICI Pru Long Term Fund
3. ICICI Pru Liquid Fund

Equity Funds:

1. MOST Focused Long Term Fund
2. Franklin India Prima Fund
3. Axis Long Term Equity Fund

Personally most of my portfolio is through direct equities. Hold 20-30% of my equity portfolio through equity mutual funds (all direct plans) and mostly for availing tax benefits under 80C.

Good balanced funds have not been used personally due to reasons mentioned above. Else they’ll surely be in the portfolio. When I construct portfolio for my wife or siblings or close friends, balanced funds occupy major part in them.

Below is how we designed a portfolio of mutual funds for a close friend of mine (moderate risk investor in his late 30s). His equity exposure was to be 35% of his net worth as per his desire.

1. Franklin India Balanced Fund
2. HDFC Balanced Fund
3. Axis Long Term Equity Fund or MOST Focused Long Term (for tax saving).

We have already discussed how to design a portfolio based on risk appetite in our “Top 10 mutual funds” post linked above.

As always, we prefer balanced funds for retail investors doing a regular day job and not having great eagerness to learn the nuances of direct equities.
Asset Allocation

If you see in personal portfolio, none is dividend option. I do have sufficient regular income as of now in the form of salary, dividends, passive income and hence have not considered Monthly Income Plans or Dividend options.

All are Growth options in Direct Plans.

Gold and real estate form around 25% of my net worth. The asset allocation is designed in a way to have high exposure to equities as around 30+ years and relatively young . Hence, plan to keep it that way for next 10 years atleast.

Now that we have disclosed our mutual fund portfolio, let us know what you think about them. Happy investing!!