We would advise you to consolidate your small cap schemes as there are three schemes in the portfolio and stop your SIPs in SBI Small Cap and Axis Midcap and consolidate SIPs in Nippon India Small Cap Fund.
I am a 34 year old, unmarried government employee, drawing a net salary of ₹42,000. I have an investment horizon of 15-20 years. My investments include deposits of around ₹4.5 lakh in Public Provident Fund (PPF) apart from ₹4 lakh. I am investing in the following Systematic Investment Plans (SIPs): SBI Equity Hybrid Fund - ₹1,000, SBI Small Cap - ₹500, Kotak Standard Multicap - ₹1,000, Mirae Asset Large Cap - ₹1,000, Mirae Asset Emerging Bluechip - ₹ 1,000, Mirae Asset Mid Cap— 1,000, Axis Bluechip— ₹ 1,000, Axis Midcap— ₹ 500, Axis Small Cap— ₹ 500, ICICI Bluechip— ₹ 500, Nippon Small Cap— ₹ 500. I also want to start SIP in PGIM Midcap Opportunities Fund.
I pay an Equated Monthly Installment (EMI) of ₹12,000 to repay a home loan of ₹12 lakh, and contribute ₹2,750 per month to the General Provident Fund (GPF). I can take a reasonable risk and want to know whether my investments will ensure a reasonably good corpus.
Name withheld on request
While your portfolio looks good overall, we believe it may need a little restructuring to better align it with your objectives. We advise you to discontinue your SIP in SBI Equity Hybrid Fund and invest the amount in a passive fund that invests internationally to diversify your portfolio geographically. We would advise you to consolidate your small cap schemes as there are three schemes in the portfolio and to stop your SIPs in SBI Small Cap and Axis Midcap and consolidate SIPs in Nippon India Small Cap Fund. You can also stop SIP in Mirae Asset. Use large cap funds and an index fund instead.
Continue your SIP in Mirae Asset Emerging Bluechip and Mirae Asset Midcap Fund as these funds have outperformed in the long run. Any new SIP you are planning to start can be allocated to Mirae Asset Midcap Fund to keep your portfolio consolidated instead of adding PGIM Midcap opportunities to the portfolio.
Assuming that your salary grows at 8% per annum, expenses grow at 6% per annum, you should have a meaningful retirement corpus through a combination of your PPF, GPF and mutual funds, which after age 60 is a Enable a comfortable retirement. ,
My sister is going to get married in 15 months. My family members want to save some money for marriage for that short period. Where should we put our money?
Name withheld on request
Given that you have a short-term holding period, it is important to stay out of the way in volatile assets like equities. We suggest a mix of ultra-short funds with high credit quality of underlying bonds and arbitrage funds. Arbitrage funds take advantage of the difference between the cash and futures markets and run a fully hedged portfolio. These funds come with tax arbitrage over traditional fixed-income instruments, as well as being taxed like equities at 10% long-term capital gains tax rate if held for more than 12 months.
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