I am a regular reader of The Hindu BusinessLine , particularly the Portfolio section of the paper, which I find very informative and interesting. I currently invest ₹7,500 each month in the following funds: Aditya Birla Sun Life Equity Advantage, Aditya Birla Sun Life Equity, Franklin India Smaller Companies, HDFC Mid-Cap Opportunities, Mirae Asset Emerging Bluechip and L&T India Value Fund.

My goal is long-term wealth creation and I do not intent to redeem these funds for the next 15 years. Kindly review the choice of funds and suggest if any changes need to be made in the funds or in the amount invested. My investment in HDFC Mid-Cap Opportunities Fund is due for redemption in May 2020. Kindly suggest if I can continue with this fund.

Jyothi

Thank you for your comment on the Portfolio section. Glad you find it useful. Here is a review of your fund holdings:

You currently invest in one fund each in the multi-cap (Aditya Birla SL Equity), mid-cap (HDFC Mid-Cap Opportunities), small-cap (Franklin Smaller Companies) and value (L&T Value) categories, and in two funds in the large- and mid-cap category (Aditya Birla SL Equity Advantage, Mirae Emerging Bluechip). Your choice of funds reflects a high risk appetite.

Since you are investing for long-term wealth creation and have a 15-year time-frame in mind, the funds can be expected to bring down the risk quotient and deliver inflation-beating returns.

All your funds have reasonably good long-term track records. While ABSL Equity, Mirae Emerging Bluechip and L&T Value are rated five-star by BusinessLine Portfolio Star Track MF Fund Ratings , the remaining funds are rated three-star. Since you are investing in two funds in the large- and mid-cap category, you can stop your SIPs in Aditya Birla SL Equity Advantage and add a pure large-cap fund to your portfolio; Axis Bluechip is a good choice.

Otherwise, you can continue with SIPs in the remaining funds for the time being.

As regards to a review of the amount invested, it is not clear if you are investing ₹7,500 each month in each of the six funds or if the ₹7,500 is spread across all the funds mentioned above. If it is the former, it implies that you currently invest ₹45,000 a month through SIPs. If you invest ₹45,000 a month for 15 years and your investments bring in 10-12 per cent compounded annual returns, you can expect a corpus of ₹1.87-2.25 crore at the end of the period.

If you are investing ₹7,500 a month across six funds, you can consider trimming your portfolio to only two or three funds across large- and multi-cap categories. You can add more funds as and when your investible surplus increases.

Having a long-term horizon does not mean that you should continue with the same funds until you reach your goal.

Without cutting down on your investments, you can periodically review your portfolio, weed out consistent underperformers and replace them with better funds, if necessary.

Keep a watch on the funds rated three-star by us in BusinessLine Portfolio Star Track MF Ratings . If the rating slips to two or one star, you can consider shuffling your portfolio.

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