Hello Basu, You are doing great job by this blog. Keep it up. I want to start SIP at ₹15k for 12 years.For that I am allocating 70 % in equity, in which 50%in large cap,30% in mid cap and 20 % in small cap. My query is, 1) I want to invest in 2 ELSS funds for tax saving purpose. Where should I put these 2 ELSS funds in which cap, Or should I consider them 4th &5th fund in my portfolio along with already 3 funds(1 large cap,1 mid cap,1 small cap) ? Thanks.
It depends on fund manager or AMC choice of a particular fund. Hence, better to consider such funds as multi-cap fund (if there are no clear portfolio definition in fact sheet).
Thanks for your reply.
I didn’t get notification for your answer, so I replied it today.Sorry for that.
If I want to invest in 2 ELSS funds at ₹6k each via SIP as well as wanting to keep large:mid:small cap in 50:30:20 ratio for 12 years horizon in equity.
1)how can I do both the things ?
2)Say,’Birla sun life tax relief 96 fund’ has 39%in large cap,53%in mid cap and 7% in small cap now.Are they bound to maintain caps ratio, or they can move to any cap,any time in any amount ?
3)How do you see 2 multi cap funds in the form of 2 ELSS funds in equity portfolio for 12 years horizon?
To arrive at the asset allocation within equity funds under ELSS funds, you have to dig deep into each funds portfolio and then only you can decide where the fund is investing. With the mere naming of all ELSS funds will not give you the clear picture of right market cap investment.