My investment portfolio - SIP is the strategy

For those of you who are wondering what my portfolio of mutual funds is, here is a sneak peak of my mutual fund investment portfolio. The entire portfolio is portrayed in various ways, percentage of allocation, type of funds, Style of investing, sector allocation etc. Before jumping into the details, below are my investment objectives and other details:

1. To create a sizeable corpus for retirement.
2. My current age is less than 30 years.
3. I am a long term investor, with an investment horizon of 10 years or more.


Choice of Funds:
1. HDFC Equity - Growth (Equity Diversified)

2. Kotak 30 - Growth (Equity Diversified)

3. ICICI Prudential Infrastructure - Growth (Equity Diversified)

4. Reliance Growth (Equity Diversified)

5. Birla Sun Life Dynamic Bond Retail - (Debt Fund)

Remember HDFC Equity and Kotak 30 are my core holdings. Other funds like Reliance Growth and ICICI Pru Infrastructure of funds that support my core holdings.






Please let me know if my choice is good. The screenshots of my investments are from an online portfolio manager.


Important: I have been investing through SIPs in all the mutual funds. Below are the key points behind my investments.





1. SIP strategy just works. As on this day, my portfolio has positive returns. This has been possible only through SIPs.

2. I have invested more during market lows. Do not shy away from investing when market is down.

3. I hope my choice of funds is good. Stick to funds with good performance track record.

4. Do not forget the debt component in the portfolio. This is very important. However, the percentage of allocation to equity and debt depends on your risk appetite.

5. Rebalance your portfolio once a year.

A Savings Account gives better savings now !

I hope people will now start parking most of their cash in savings accounts. After the RBI advising the banks to change the way the interest is calculated for the funds parked in a savings account, the common man should now feel much happy about piling more cash in their savings accounts. After all, savings account is intended to provide some savings!!!

Banks used to calculate the interest only for the minimum amount or balance present in a savings account starting from 10th day of a month till the last day of the same month. This will now be changed. The interest will now be calculated on a daily basis. Reserve Bank of India brings owes this change to the increased computerization in the public and private sector banks in india.

This change is supposed to be implemented from April 1st, 2010.

Believe in SIPs (Systematic Investment Plans)

We have seen a tremendous downside of the markets during last several months and hope the markets are back again. Sensex has touched the 11K mark twice this week and the only hindrance for the bulls should be the international finance crunch. 

I would like to put before the readers what i have experienced, the so called, magic of SIPs during these phases of the market. It has been a stunning experience for me to see how my investments have grown during the last 10 months through SIPs. It would have never been possible through lumpsum investment. I am now a firm believer of the SIP concept. It induces discipline in your investments in either conditions of the market. Eventually, what i have observed is the accumulation of the fund units during market lows and thus giving rise to profits when it is up. In fact, that means, all my investments during the bear phase of the market has given a push during the bull phase!!!

A stunning return of around 16percent for my investments where lumpsum investments lost more than 30% is really worth mentioning. Ofcourse, all this only after choosing the right funds!

It is such a good lesson to actually see my SIPs working. So, as a piece of advice, take advantage of SIPs, especially during such a volatile markets. Invest more when markets are low. It really pays off!!!