Finance

Investment Strategies: Modeling A Retirement Portfolio

Posted Vinaya HS

If you have Rs 20,000 to invest each month towards building a retirement corpus, how does this portfolio sound for a retirement that’s twenty years away?

  1. Rs 10,000 in HDFC Top 200 Fund (Growth)
  2. Rs 5,000 in HDFC Prudence Fund (Growth)
  3. Rs 5,000 in HDFC Monthly Income Plan Long Term Plan (Growth)

What changes would you suggest?

Note: There is an overlap in the equity-investing style between the HDFC Top 200 Fund and the HDFC Monthly Income Plan Long Term Plan since both invest in large-cap growth stocks.

10 thoughts on “Investment Strategies: Modeling A Retirement Portfolio”

  1. I am using fund 1 and 2 for my child’s education corpus. Obviously these are good funds as of now with good history. They would need a look-in every year or so. A CFP would say you putting all your eggs in HDFC. You spoke about deposit insurance so you should know the risk!

    I like the large cap tilt. Its pretty risky to have small-caps. A big crash can decrease your corpus significantly

    For my retirement I use NPS (mandatory in my case) +PPF +MFs with not more than 35-40% in equity. Could take a little more risk but NPS with 85% debt (mandatory)
    prevent this as of now!

    Fund 3 beats PPF quite well, but what you do with the monthly income? reinvest it in the same fund?

  3. I have read the article and am aware of Mr. Jains exploits. The point is there is no gaurantee he would he remain in HDFC or reproduce his success. Besides like us all he is a mortal!
    Hence the point about all eggs in one basket.

  5. Vinaya- HDFC Equity would be good fund to look at. IDFC premier, DSP Black rock top 100. Nevertheless HDFC top 200 too a good fund.
    What you can do invest 5k in HDFC top 200 and balance another fund.

    I have the same portfolio with couple more toppings :)

    I still owe you a call :) and you have made in ways as wht I had planned to tell u on the phone!

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