Reviewing My Funds Portfolio

Today I was thinking of reviewing Indian Equity market portfolio again, I have not reviewed it for a year. For crypto, I have reviewed it last month and moved 80% of my Steem Investment as a Hive and BTC.

The Indian markets seem to be a lot volatile due to the coronavirus pandemic and also because of the India and China standoff in Ladakh. The bottom is unknown as of now and it feels like the market will correct itself again, because of the continuing travel bans, slowdown in earnings and the overall growth coming down. The problem is some of the stocks have done well after going down i.e. they came back to the almost same amount just before the lockdown whereas some stocks seem to be in that phase still and going down still finding bottoms.

I was reading somewhere that some of the Investors tell to go through Core and Satellite approach i.e. Core applies to long term holdings like Large Cap, Multi-Cap whereas Satellite applies to holdings as per market conditions like Hybrid or Multi-Cap. They say that your core should be above 70% whereas your Satellite should constitute as per your risk-taking ability. And the whole investment time should be around 7-8 years if you are investing through Mutual Fund route, but again given the clause that you should review your portfolio every 1-2 years. Investing in Mutual Fund through SIP is best and we should not stop it at any cost, whereas if someone has extra money than they can also invest as a lump sum to the existing funds which are performing well.

Given the conditions, I thought of reviewing my portfolio because I had to remove some of the non-performing funds whereas adding some of the top-performing stocks. But be cautious, do not do many changes in this pandemic as it will affect your overall portfolio value. What I am doing is checking if some of the funds have poor compared to others in the same category, then I will move the SIP to better performing fund instead of just stopping it altogether. Though I am not worrying much about the negative investment as of now because I have an emergency fund which will take care of my 6 months of investment and again debt funds which will take another 6 months of investment. That is I have 1 year time, to not touch my equity investment at all, which gives it enough time to regain the lost value. There is a lot of factors which usually changes people's perspective towards equity investment like times like these, changes in risk-taking ability, goals changed over time or you change the investment style altogether.

The problem is people say that you should invest for 5-10 years to get the investment but what about if you don't get that investment returns which you anticipated i.e. it's unable to catch up the inflation then its a worrying situation and thus we need to review it as per the market conditions. Also what I have analysed that in times of economic uncertainty, gold shines in the last year or so it has increased 10-15% thus I am also adding it to the portfolio now as it is effective diversifier for your portfolio. While reviewing I have found out that it is helping me to reset my asset allocation, like adding Gold Fund and also removing underperforming investment or investment which was taken as an impulse action. Diversifying little further, to gain maximum advantage and thus keeping in line with the financial goals.

Have you reviewed your portfolio recently, what changes you have done?