Mutual Funds

Your Fund Portfolio

Parvatha Vardhini C | Updated on March 10, 2018

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I have been investing in the following funds for the last six months: Quantum Long Term Equity - ₹3,000; ICICI Pru Focused Blue Chip - ₹5,000; Franklin India Flexi Cap - ₹3,000 and HDFC Mid-Cap Opportunities - ₹8,000. I can take moderate risk.

Please let me know whether I should continue my investments in these funds or switch out of them. 

Also, I want to invest ₹60,000 every year for my newborn son’s higher education needs for the next 15 years. Please suggest good investment options.

Deepti Shreekanth

With a large-cap fund in Pru Focused Bluechip, a mid-cap fund in HDFC Mid-Cap Opportunities and a multi-cap fund in Franklin Flexi-Cap, your choices reflect a good combination of funds across market capitalisations.

Besides, while these three funds predominantly follow the growth style of investing, Quantum Long-Term Equity, with its value tilt, complements them well. All funds are seasoned performers and you can continue investing in them.

However, for the moderate risk appetite that you have, you are now investing ₹11,000 in mid- and multi-cap funds which carry higher risk vis-à-vis ₹8,000 in large-cap-oriented funds (Quantum Long Term Equity and Focused Bluechip), which generally suit low to moderate risk appetite.

You can hence tweak the allocations a bit. Split the ₹19,000 as follows: Invest ₹5,000 each in Focused Bluechip, Quantum LT Equity and Franklin Flexi-cap. The remaining ₹4,000 can go into HDFC Mid-Cap Opportunities.

As far as saving for your son goes, you can open a PPF account in his name and invest ₹60,000 there.

Although the returns for each year will be reset by the government, it is a very safe and tax-efficient option.

Since up to ₹1.5 lakh can be invested in PPF each year, even if you have a PPF account for yourself, you can split your investments between these two accounts.

If you are particular about equity investments, you can break down the ₹60,000 per annum into SIPs of ₹5,000 a month. You can invest ₹2,500 each in BNP Paribas Equity and Mirae Asset India Opportunities for this purpose.

Over the years, as your surplus increases, you can add more sums to your savings to meet your goals.

Published on February 07, 2016

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