This portfolio is designed to meet investing needs for over 3 years and upto 7 years of investment horizon.
The portfolio has been adequately diversified across market capitalisation and investment styles. It consists of 2 debt funds and 1 International Fund and 2 equity funds.
The fund aims to be invested upto 60% in equity and 40% in debt. It represents a MODERATE 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.
- Quantum Long Term Equity Value Fund – (Weightage: 20%) – (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.
- 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: 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.
- 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.
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.