One NRI had the following portfolio and wanted my opinion on the same.
1. JM Financia : 2 SIPs per month @ 1000
2. Fidelity Equity 3 SIPs per month @ 1000
3. Birla Frontline Equity: 4 SIPs per month @ 1000
4. Sundaram Capex : 3 SIPs per month @ 1000
5. Pru ICICI Infra : 2 SIPs per month @ 2000
6. Reliance Banking : 2 SIPs per month @ 1000
7. FT Prima Plus : 4 SIPs per month @ 1000
8. HDFC Growth : 4 SIPs per month @ 1000
9. Magnum Contra : 3 SIPs per month @ 1000
10. JM Basic : 1 SIPs per month @ 2000
11. Tata Infra : 1 SIPs per month @ 1000
12. Reliance Div Power : 1 SIPs per month @ 1000
13. DSP ML Tiger : 4 SIPs per month @ 2000
Out of the above investments, it is quite clear your portfolio is quite diversified and slightly titled towards sector funds, which is obvious due to your risk taking capability. Your portfolio needs very little changes only due to the fact your portfolio is too much focussed on Infrastructure Funds. I tend to prefer Diversified Funds because the Fund Manager in the Diversified Fund will also definitely include sector stocks if he feels these will give good returns.
1. Even though Banking and Financial Sectors look as good long term story, having two funds in a portfolio is not recommended. You could consider stopping one of the two fund in JM Financial and Reliance Banking fund, preferably in Jm Financial Fund.
2. Fidelity Equity Fund is a "go anywhere fund" which is my long time favourite and recommend you to continue your sip and stay invested.
3. Birla Frontline Equity Fund has been a good performer and is again recommended to continue investing in the same.
4. Sundaram Capex has been a excellent performer and yet again this fund can be continued.
5. Pru ICICI Infra Fund has had a great last year. Though it may not give as good returns it gave in the past, you can continue to be invested in the same.
6. Reliance Banking Fund, has been volatile due to its high sector concentration and you should continue in the fund only if you are stopping the JM Financial Fund.
7. FT Prima Plus fund has a good track record. But in the recent past, almost all Franklin Templeton Funds have been struggling to even match the benchmark returns. Of course, you do not have any Opportunity Fund in your portfolio, but I feel you are better off by switching to Templeton Equity Income Fund, which invests in High Dividend Yield Stocks Worldwide. this will not only give your portfolio Geographical Diversification but also give some kind of a protection in a declining market.
8. HDFC Growth Fund has been a sort of Decent Performer who does not want to be in limelight. It tends to be in the top quartile in terms of performance but never seems to be a Blow-Out Performer nor a Dud Performer. Worth continuing., Be invested.
9. SBI Magnum Contra has a 5 Star Rating by most Research Houses. But, I personally, have my own doubts. You can see my messages about the fund in the moneycontrol mutual fund message board and you will know that I would rather have my clients invest in JM Contra fund, if they want to have a Contra fund or SBI Comma fund if they want to continue investing in SBI Fund House. Same goes for you.
10. JM Basic has had a phenomenal turnaround in its fortunes since Sandeep sabharwal joined the Fund House. Its ranking has risen from a lowly 165 to even 1 at one point of time. Even though it has slipped recently, it is more due to market correction rather than any change in the portfolio of the Fund. Continue to invest in the same.
11. Tata Infrastructure Fund has been a Star Performer since its launch. But it too is slipping recently. Since you have already have ICICI Infrastructure and DSPML Tiger Fund, I would recommend you to switch to Tata Growing Economies Infrastructure Fund which invests upto 35% in stocks outside India or if you have no attachment to the fund and would rather have High Returns, Stop the SIP in the fund, continue holding the old investments and redeem the same at the opportunate moment and start a fresh SIP in Reliance natural Resources Fund which still holds upto 65% of its corpus in Cash and gives a different flavour to your portfolio.
12. Reliance Diversified Power Sector Fund may have given above average returns in the past, but the future may not be as rosy. Power Sector will have Execution Problems, Raw Materials Problems to deal with in coming months. Already you are invested in ICICI Infrastructure, DSPML Tiger Fund., both these funds do hold many Power Stocks in their portfolio and you are only duplicating your folio rather than diversifing them. You can stop the sip in this Fund.
13. DSPML Tiger Fund has been a consisten performance and deserves to be in your portfolio.
Finally, your portfolio lacks a Good Opportunity Fund which can add zing to your returns. Among these, I would like you to look at DWS Opportunity Fund, Kotak Opportunities Fund, Lotus India Agile Fund, Mirae India Opportunities Fund.
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