I started investing into equity markets around a decade back with the guidance of my friend who was already invested in Mutual Funds for a year now. I started with below framework
- Tax Saving Schemes so as to fulfill my Section 80(C) quota
- Six different Fund houses of Indian, Foreign, Private and Public Shareholding
- Systematic Investment Plans of equal amount across 6 different plans
That was my approach of implementing different investment strategies and tools like diversification, cost averaging and tax planning which I could grasp through regular reading of investment and portfolio related articles.
Lot many experiences have got collated in my life since then, in both professional and personal life. Professionally I learnt Wealth Management practices of an American Banking giant while working with Infosys, had my Masters in Finance from IIT Delhi, worked as a Senior Wealth Manager with one of the biggest wealth management player of India and finally shifted to Dubai as a Wealth Manager. On personal front, I got married , faced a huge family medical exigency, bought my first flat and became a father. All of these experiences taught me a lot about personal finances and portfolio management.
Both of these professional and personal events made my own portfolio very unpredictable and short term. Just when I will feel that my investment approach is settling in I will either face a job change or a pressing personal issue. But one thing that always remained constant was my passion for investments. Thanks to the above discussed situations, my portfolio had become very haphazard and heterogeneous, lacking a common approach or set of principals.
So sometime in last phase of last year, I decided to implement in my own portfolio what I always advise to my clients as a Wealth Manager – Proper Asset Allocation based on Relevant Risk Profiling.
Below is a snapshot of my portfolio sometime in Sep’16.
|Scheme Name||Latest Value|
|Birla SL Dynamic Bond -RP (G)||90016|
|Birla SL Top 100 – Direct (G)||33557|
|BNP Paribas Long Term Equity (D)||6018|
|Franklin (I) Bluechip – Direct (G)||27799|
|Franklin (I) Prima – Direct (G)||18865|
|Franklin (I) Smaller Co -Direct (G)||7280|
|Franklin (I) Tax Shield -Direct (G)||8229|
|Franklin High Growth Co -Direct||32949|
|Franklin India Tax Shield (D)||6329|
|ICICI Pru Flexi Income (G)||106071|
|ICICI Pru Focused. Blue -Direct (G)||27769|
|ICICI Pru Infrastructure-Direct (G)||9630|
|ICICI Pru Long Term Equity||5827|
|ICICI Pru Long Term Equity||26134|
|ICICI Pru Top 100 Fund – Direct (G)||16484|
|ICICI Pru Value Discovery – DP (G)||11482|
|Kotak Tax Saver – Regular (D)||23632|
|L&T Tax Advantage (D)||17159|
|L&T Tax Advantage -Direct (G)||6149|
|Reliance Small Cap – Direct (G)||14928|
|Reliance Tax Saver(ELSS)-Direct||13687|
|SBI Magnum Midcap Fund – Direct||6347|
|SBI Magnum Tax Gain – Direct (G)||27171|
|SBI Magnum Tax Gain (D)||4293|
|SBI Pharma Fund – Direct (G)||37948|
A total of 22 schemes haphazardly across asset classes, sectors and market cap. From there on my portfolio now looks like below as on date.
A much leaner and planned portfolio spread across MFs and Stocks. But as they say, more so in the world of Wealth Management, devil lies in details. While MFs gave an annual return of 37% (compounded) , corresponding figure for stocks is humongous 97%.
So what was the difference that brought this huge difference in the returns. Click on 97% Annual Returns : Implementation to learn “How I did it”. Click on 97% Annual Returns : Mutual Funds Selection – Statistical Analysis beyond Historical Returns to learn which ratios you need to check to select MF.