You must change the following:
- Get rid of regular plans in your mutual fund portfolio. Switch to direct plans to earn more in the long run.
- Weed out consistent bad performers if you are holding them for a long time; change to better ones.
- Get out of closed ended funds as soon as the maturity window is over.
- If you are over invested in a particular fund house, then diversify.
- If you are taking too high a risk, change to less risky fund classes to protect you returns. Get a free risk profile done here.
- If you are taking too low risk, make changes to get into fund classes that can help you get a higher return.
- Get out of funds that charge too high an expense ratio, compared to the the return they give you.
- Be wary of funds that have a high churn.
- Change your portfolio in line with the life goals as they approach. Do not stick to the old allocation as goals come nearer.
- Add some gold funds if you do not have them. They are a good hedge against volatility and short term inflation.
Happy investing!
