I’m 35 years previous and doing month-to-month SIPs (systematic funding plan) within the following mutual fund (MF) schemes: Canara Robeco Blue Chip Fairness and HDFC Index S&P BSE Sensex ( ₹6,000 every), Edelweiss Balanced Benefit and Mirae Asset Hybrid Fairness ( ₹5,000 every), Kotak Small Cap ( ₹3,000) and SBI Magnum Medium Period ( ₹10,000). Am I investing in too many funds? Is there any want for diversification into debt / gold?
— Title withheld on request
Ideally, 6 to eight funds are adequate to construct your MF portfolio. As the scale of the portfolio will increase, chances are you’ll spend money on a most of 10 funds to cut back the danger of being overdependent on any specific fund or fund home.
Nevertheless, the funds you’re investing in are throughout fairness, debt and hybrid classes. In our opinion, you possibly can choose the fund classes based mostly in your funding goal. The debt funds can be utilized for short- to mid-term goals, hybrid funds might be helpful for mid-term targets, and for the long run, you possibly can think about investing in fairness funds.
While you comply with this strategy, your asset allocation will get structured based mostly in your monetary targets, fairly than a predefined asset allocation.
At current, your month-to-month funding of ₹35,000 throughout all of the funds is roughly 60% in fairness and 40% in debt. All of the funds that you’re investing in are good and have executed effectively inside their classes.
In case your funding goal is for the long run then you possibly can cut back the SIP in debt and hybrid and make investments extra in fairness funds. In fairness, you possibly can think about including Parag Parikh Flexicap Fund and SBI Centered Fairness Fund in your funding portfolio.
From a hybrid fund perspective, each the funds that you’re investing in are good. In case you have common funding in debt within the type of EPF, VPF or PPF, then chances are you’ll cease the SIP in SBI Medium Period Fund, if you’re investing within the fund for a long run.
Harshad Chetanwala is co-founder at MyWealthGrowth.com.
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