I am 31 years old. I am investing Rs 25,000 every month in the following funds:
- Axis Bluechip Fund Direct: Rs 6,500
- SBI Small Cap Direct Growth: Rs 5,000
- ICICI Prudential savings plan: Rs 2,500
- Quant Tax Plan: Rs 1,500
- Canara Robeco Equity Taxsaver Fund: Rs 2,500
- Mirae Asset Tax Saver Fund: Rs 2,500
- Mirae Asset Large Cap Fund: Rs 1,500
- Parag Parikh Flexi Cap Fund: Rs 1,500
- Invesco India Growth Opportunities Fund: Rs 1,500
I am looking to save for at least 15-20 years for my daughters’ education and marriage. Are the funds correct? I want to invest Rs 15,000 extra every month. Where should I invest?
It’s not possible to comment about your mutual funds’ portfolio as you have not shared your risk profile. It’s extremely important to choose your mutual funds based on your risk tolerance and goals. For example, if you are a conservative long-term investor, you should invest mostly in large cap funds. If you are a moderate investor, you can invest in flexi cap funds.
A quick word about your portfolio. You are investing in too many schemes. Investing a small amount in too many schemes would often result in over-diversification and duplication, dragging down the overall returns from your investments. Limit your investments to two or three schemes. Also, adopt a goal-based investment strategy. Find out how much corpus you need for each goal. Then invest an adequate amount of money in a scheme or two as per your risk profile.