This portfolio is designed to meet investing needs for over 3 years and upto 7 years of investment horizon. This time frame allows you to add some exposure to equities.
The portfolio has been adequately diversified across market capitalisation and investment styles. It consists of 2 debt funds and 1 International Fund and 3 equity funds.
The fund aims to be invested upto 70% in equity and 30% in debt. It represents an AGGRESSIVE risk profile.
Here is the portfolio.
- Parag Parikh Long Term Equity Fund – (Weightage: 20%) – (Category: Equity – Multicap) – The fund is a go anywhere, value style fund. A third of its portfolio is usually invested outside India. It is also not averse to holding cash or investing in arbitrage opportunities when the right opportunities are not available.
- Motilal Oswal Multicap 35 Fund – (Weightage: 15%) – (Category: Equity – Multicap) – 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.
- Sundaram Midcap Fund – (Weightage: 15%) – (Category: Equity – Midcap) – 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.
- 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.
- Franklin India Ultra Short Bond Fund – (Weightage: 15%) (Category: Debt – Ultra Short) – It offers a unique opportunity to invest in a portfolio that is significantly built on structured credit investments, where the manager uses special mechanisms to prevent any defaults. These opportunities may not have the highest credit rating. This is an aggressive strategy which has worked over many years now.
- HDFC Short Term Debt Fund – (Weightage: 15%) (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.
- 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.