Mutual Funds

Your Fund Portfolio

K Venkatasubramanian | Updated on January 24, 2018

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I am 27 and work for a software company. I have a term plan for ₹1 crore, but I need to take a health insurance policy. Currently, I am investing ₹2,000 each in the following funds through SIP (systematic investment plan) mode: HDFC Balanced, ICICI Pru Focused Blue Chip, UTI Opportunities, IDFC Premier Equity and Franklin India Smaller Companies. I will add an Axis tax-saving fund from April onwards. Are these fund choices appropriate or do I need to make any changes? I don’t have any goal as of now. Also, I would like to know what a diversified fund means. I am unmarried and may tie the knot in 2016.

Rahul Jha

Coming to your last question first, a diversified scheme invests in a wide range of stocks across different sectors which the fund manager believes would deliver well and beat their benchmarks convincingly. There would generally be no heavy bets on individual sectors. Diversified schemes can further be classified into large, mid and multi-cap schemes based on the market capitalisation of the stocks chosen.

As for your portfolio, except for IDFC Premier Equity, you can retain other schemes. This fund has been underperforming top peers over the past couple of years. Stop SIPs in the scheme and instead invest in Canara Robeco Emerging Equities. You have chosen a blend of large and mid-cap schemes, making it fairly balanced in keeping with your age. You may want to reconsider investing in HDFC Balanced, unless you want to lower the risks in your portfolio. For tax planning, Axis Long Term Equity is a good choice.

Take a health cover as quickly as you can. If possible, try to have long-term goals spread over 7-10 years so as to channelise your savings effectively. In case you plan to spend substantially for your wedding in 2016, set up a recurring deposit for one-two years. Review your schemes once a year and correct your course, if necessary.

Published on March 01, 2015

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