I am 31 and have been investing around Rs 3,000 each in L&T Equity and HDFC Top 200 every month since February 2012. Please let me know if I should continue investing in these funds or if I should change my portfolio.

Pradeep You have made a reasonable choice of funds for your portfolio. HDFC Top 200 is a large-cap oriented fund with a proven track record of delivering returns across market cycles. L&T Equity too has a seven-year track record, though not as strong. But this fund has done reasonably well with its large-cap focus.

You can continue investing in these two funds. But if you want a scheme that has a large-cap focus and has delivered stronger returns, you can choose Franklin India Bluechip or UTI Opportunities.

*** I had invested in HDFC LT Advantage Fund in 2001 for the purpose of saving taxes. The fund has delivered good returns till now. Is it advisable to continue holding it or should I switch over to some other fund? Please advise.

Sreeram It is nice to note that you have remained invested in HDFC LT Advantage for the past 12 years. The scheme has generated compounded annual returns of over 25 per cent over this period, clearly showing the benefits of remaining invested in the markets over the long-term.

Since tax-saving funds have a lock-in period of three years, you can consider exiting the fund or sweeping profits. You will, however, receive tax benefits for only one year for a lumpsum you invested in 2001.

If you wish to invest in another tax saving fund in the future, you can consider Canara Robeco Equity Tax Saver or Franklin India Tax Shield.

*** I am 54 years old and am a self-employed professional. Please suggest a suitable MF portfolio for 10 years. I can invest Rs 20,000 every month.

Dilip Bagaria You have started out pretty late on investing. At 54, there may be limited scope for taking risky bets, nor sufficient time to recover from any loss arising out of market-related investments. Since you are self-employed, your income is also likely to fluctuate.

But better late than never! You can still build a conservative portfolio with lower returns expectation. Having a 10-year investment horizon would help generate reasonable returns.

Invest Rs 5,000 each in Quantum Long Term Equity, ICICI Pru Focussed Bluechip and UTI Opportunities. These are predominantly large-cap stock-oriented schemes and have sound track record. The balance Rs 5,000 can be invested in HDFC Balanced. Alternately, if you want still lower risks, replace ICICI Pru Focussed Bluechip with Birla Sun Life 95 fund, a balanced scheme with a proven record.

We hope you have made investments in other avenues such as debt (FDs, RDs, PPF etc), gold and real-estate.

Review your portfolio every year to take corrective action and rebalance if necessary. If your return expectations or targeted corpus levels are reached ahead of time, book profits and move the proceeds to safer debt avenues.

(Queries may be e-mailed to >mf@thehindu.co.in )

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