My Core Portfolio of Mutual Funds 2009

Let us today discuss about my portfolio of Mutual Funds. As I have already told you that I am managing this portfolio of mutual fund since 2007. In May 2007, I Invested Rs.2,00,000 in 7 mutual fund schemes which later on I reshuffled to 4 Mutual Fund Schemes only last year.

Today When I am writing this article (December 2009), The Net Worth of this portfolio is Rs.2,65,000. And that is Rs.62,000 of Capital Gains in 2 years. Now this is approx 15% Compounded annual return. And That is not Bad at all because the year 2008 was the year of USA Recession and Global economic slow down.

Here is my own Mutual Funds Portfolio. The star ratings I have mentioned are according to Valueresearchonline.com

01) DSP Blackrock Lynch T.I.G.E.R. Fund – 4-Star

02) HDFC Top 200 Fund – 5-Star

03) Reliance Growth Fund – 4-Star

04) SBI Magnum Umbrella Contra Fund – 4-Star

All of the above are my all time favourite mutual funds and all of them have a proven past record performance of more than 5 years. Right now my Rs.2.65 Lakhs are invested among the above 4 funds in various proportions.

I advise you that, any one or more of the above funds should be Core funds in anyone’s Portfolio. This is because Vanilla (Equity Diversified) is the best portfolio strategy.

Remember, If it is not impossible than it is next to impossible to go anything wrong with Vanilla Funds. All the Sector/Thematic Funds are on 2 extremes means they are either on the top performing funds of the year of they are at the bottom.

So What I advise you is that, Allocate most of the fund in 4-star or 5-star rated Equity Diversified Mutual Funds like above. Your Core Portfolio should be of above types of funds only.