This portfolio is designed to meet investing needs for over 7 years of investment horizon or the Long Term. It represents a MODERATE risk profile.
The fund aims to be invested upto 50% to 60% in equity and 40% to 50% in debt / fixed income. The aim is to minimise risk and yet be able to capture upside of equity for the portfolio.
This portfolio should be used only by those who have the patience and strength to live through a 20% 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 2 debt funds and 2 equity funds.
Here is the portfolio.
- Parag Parikh Long Term Equity Fund – (Weightage: 30%) – (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.
- Quantum Long Term Equity Value Fund – (Weightage: 30%) – (Category: Equity – Large cap) – This fund adds the equity portion to the portfolio. The Quantum Long Term Equity Value fund is a value style fund with its investment universe predominantly in the Top 200 Indian stocks. With its prime focus on safety of capital invested, it is also not averse to holding cash when the right opportunities are not available. The fund can underperform bull market cycles but overall offers more stability and less drawdowns than its peers.
- SBI Magnum Ultra Short Term Fund – (Weightage: 20%) – (Category: Debt – Ultra Short) – 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.
- Franklin India Ultra Short Bond Fund – (Weightage: 20%) (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.
Each of these funds bring a unique strategy to the portfolio and have very little holdings 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.