Mutual fund portfolio - additional fund suggestion

Q & A Forum › Category: Investments › Mutual fund portfolio – additional fund suggestion

ramkumar asked 7 years ago

Hello Sreekanth, Thanks a lot in the past for your valuable suggestions. I had started in mutual fund investment based on your advice. Now I need your inputs for evaluating my portfolio. Current investments: Axis long term equity fund (ELSS) HDFC hybrid equity fund (Hybrid) Franklin smaller cos fund (small cap) I am investing in these funds for retirement planning (23 years) and for my home loan (13 years). I have term insurance and emergency fund in DSP liquid fund and sweepin account. I have checked the mutual fund overlap and it looks fine. Now I am planning to invest 20K per month in SIP. Now I am planning to include one more midcap fund (eg. Franklin Prima fund) and one Large cap/midcap fund (pls suggest). Now I am not investing in Axis LTE since my home loan covers my tax savings. So please suggest me to include two funds (?) in my portfolio to distribute my funds. Also one basic question... Do we have to consider any maximum SIP for any fund? or if the fund is good enough we can put more amount like 8-12K in a single fund? Please provide your opinion. Thanks in advance, Ram

2 Answers

0 Vote Up Vote Down

Sreekanth Staff answered 7 years ago

Dear Ram, If you are not going to make future investments in Axis LTE fund, you may consider adding a multi-cap fund to your portfolio. Ex : Birla Equity Fund, Kotak Standard Multi-cap or Franklin Equity Fund etc., For large-cap, you may consider an index fund like UTI Nifty Fund or actively managed fund like Birla Frontline or SBI bluechip etc., Related article : Top Mutual Fund Schemes to invest in 2019 | Best Equity Funds for Long-Term You can have higher allocation to multi-cap and/or hybrid equity fund(s).

ramkumar replied 7 years ago

Hi Sreekanth,
Thanks for your response.

1. If given a choice between Kotak Std multicap fund,Birla equity fund and Axis LTE,which one ll u suggest? (As Axis Lte is a diversified fund with good performance)
2. Should we have a maximum limit in monthly SIP for a specific fund?

0 Vote Up Vote Down

Sreekanth Staff answered 7 years ago

Hi, If tax saving is not one of your investment objectives, you can pick a regular multi-cap fund instead of an ELSS fund like Axis LTE (though it is a decent performer). However, there is nothing wrong in continuing with Axis LTE, the only thing is units under each SIP will be locked for 3 years and you need to plan your future withdrawals accordingly. 2 - It is purely subjective and depends on individual's risk profile, time horizon and goal value.