Hello, I am 26 years of age, want to invest Rs 10,000 pm as SIP in mutual funds. I have shortlisted following funds
1.ELSS-DSPBR Tax Saver/Franklin Tax Shield
2.Small cap-FI Smaller Companies/DSPBR Micro Cap
3.Mid cap-Mirae asset emerging Bluechip/Franklin India Prima/HDFC Midcap Opportunities
4.Balanced Fund-ICICI Pru Balanced/SBI Magnum Balanced
kindly through some light on my portfolio, is it good for long term perspective. is there anything wrong choosing multiple funds from the same house/AMC? like overlapping of stocks.
What is your time horizon, also how you selected these funds and where is your debt portfolio?
sir, my time frame would be 8to 10 years, talking about debt portfolio, i do invest 50,000 in PPF. i am not sure about investing in balanced fund because i already invest in ppf. i’ve selected these funds on the basis of past performance and by taking all the factors into consideration like standard deviation , sharpe ratio and other factors which i’ve learnt from online portals/blogs like valuresearchonline, morning star, moneycontrol . i know past performance should not be a criterion but we can still hope that these mutual funds would perform the way they did in the last 10 years or so. what are your thoughts about my portfolio? I am no expert so your valuable suggestions would be appreciated.
For 8-10 Yrs goal, debt and equity should be in the ratio of around 40:60. Also, whether your PPF matures within 8-10 years? If so you can hold PPF, otherwise investing in PPF is of no use. For equity, one large cap and one mid cap is enough. Refer my blog post “Top 10 Best SIP Mutual Funds to invest in India in 2017“.