I am a 30-year-old self-employed professional. My annual savings are around 7 lakhs. I have recently started investing in mutual funds online, to build a corpus for my child’s education and marriage and for my retirement. I am investing Rs. 1,000 each in the following funds by monthly SIP. Kindly advise if I am doing anything wrong and if any changes needed.
ICICI Pru focussed bluechip equity fund
ICICI Pru top 100 fund
Kotak Select focus fund
UTI Equity fund
Axis long term equity fund
ICICI Pru tax plan
Birla Sunlife MNC fund
Mirae Asset emerging bluechip cos fund
Franklin India smaller cos fund
BNP Paribas midcap fund
Franklin India prima fund
UTI transport and logistics fund
SBI pharma fund
ICICI Pru technology fund
ICICI Pru banking and financial serv fund
Reliance money manager fund
Birla Sunlife dynamic bond fund
HDFC medium term opportunities fund
I am also investing Rs. 1.5 lakhs p.a in PPF, Rs. 1 lakh p.a in bank FD, Rs 50000 in NSC and gold ornaments 1 lakh p.a
Sidhesh-Let me know how far is your goal. Also, holding these many funds not at all required. Maximum one can have around 4-5 funds (including debt). Hence, if you share the required time frame then it is easy for me to suggest.
dear Mr. Basu,hanks for your prompt reply. i wish to remain invested for long term, i.e more than 20 years.my time frame is around 20 years for my childs college education, and 25 years for my retirement.kindly suggest which of these funds i should remain invested in. i wish to have a moderately aggressive portfolio.thanking you,sidhesh
Sidhesh-My answer may surprise you. You need only 3-4 funds. I suggest you from the existing funds itself. One large cap like ICICI Bluechip, one small-mid cap like Franklin India Prima and include a balanced fund like HDFC Balanced Fund. By selecting a equity oriented balanced fund, your asset allocation towards debt part is considered as equity and treated as tax-free. Along with that if possible for portfolio allocation, include a short-term debt fund. Manage 30:70 as Debt:Equity. No more funds required. I know there are many fancy funds in market. But reality is they overlap your portfolio and will not provide you proper diversification. Avoid sector funds.