This portfolio is designed to meet investing needs for over 7 years of investment horizon or the Long Term. It represents an AGGRESSIVE risk profile.
The fund aims to be invested upto 90% in equity and 10% in debt / fixed income. This can mean higher drawdowns and day to day volatility.
This portfolio should be used only by those who have the patience and strength to live through a 50% loss of value in the portfolio because that is likely.
The portfolio has been adequately diversified across market capitalisation and investment styles. It consists of 1 debt fund, 1 International Fund and 3 equity funds.
Here is the portfolio.
- Sundaram Midcap Fund – (Weightage: 30%) – (Category: Equity – Mid cap) – The fund is a true blue mid cap fund with a rich experience under its belt. The midcaps have the potential to bring in a different risk return profile and add value to the portfolio.
- DSP Small Cap Fund – (Weightage: 20%) – (Category: Equity – Small cap) – The fund has an original mandate to not invest in the top 300 companies by market cap. The original name of the fund was DSP Micro cap fund. It is a true blue small cap / micro cap fund. It is also one of the first funds to have closed its gates to fresh investments.
- Motilal Oswal Multicap 35 Fund – (Weightage: 20%) – (Category: Equity – Multi cap) – The Multicap 35 Fund is a growth style, aggressive and focused fund. It remains 100% invested at all times. The maximum number of stocks it can hold is restricted to 35. The fund works to identify opportunities that can grow at 20% CAGR. In this pursuit, the fund can be very volatile as well.
- Franklin India Feeder – US Opportunities Fund (FOF) – (Weightage: 20%) – (Category: Equity – International) – This is a fund of fund which invests in US equities from the S&P 500 universe. The S&P 500 is the large cap index in the USA. With this fund’s presence in the portfolio, it brings in international diversification across various stocks and sectors. Specially, if you have a goal that needs to be fulfilled in a different currency, an addition of an international fund makes ample sense. As a fund of fund, the fund is taxed as a debt fund.
- HDFC Short Term Debt Fund – (Weightage: 10%) (Category: Debt – Short Term) – It invests in highest credit rating instruments and has a relatively low cost. It has been in existence for quite some time and is a low cost debt fund option.
Each of these funds bring a unique strategy to the portfolio and have very little portfolio overlap.
Note:
- This portfolio is a tax efficient option for those investors who are in the highest tax brackets.
- There is no guarantee of returns and it could be volatile too.
- You may choose an alternative fund from the fund shortlist. You may also choose to increase/decrease the number of funds.
- Please read the factsheets and scheme information document carefully before investing in the funds.