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Mutual Fund Corner. Q: 39-year-old Siddhartha Mishra writes to us from Pune. I and my wife, who is also a working professional, are investing to build a corpus for our retirement after 20 years and also for our children's higher education after 15 years. With these goals, we have been investing in mutual funds for the last five years. Please review the allocation and let us know if any consolidation required. Currently, we have accumulated about Rs 70 lakh. All the funds are into direct growth SIPs. Please let us know if there are any redundancies or if there is any fund I need to replace. I am looking for a corpus of Rs 10 crore after 20 years and around Rs 2-3 crore after 15 years. Investing Rs 10,000 per month in Mirae India Opp, Rs 10,000 per month in ICICI Blue Chip, Rs 20,000 per month in SBI Blue Chip, Rs 20,000 per month in Kotak Standard Multi Cap, Rs 10,000 per month in Motilal Multi Cap 35, Rs 10,000 per month in HDFC Midcap, Rs 5,000 per month in HDFC Small Cap, Rs 5,000 per month in Franklin India Smaller Companies, Rs 5,000 per month in L&T Emerging Business, Rs 12,500 per month in Motilal Long term Equity (ELSS) and Rs 12,500 per month in Axis Long Term Equity. Apart from the above, we have totally invested around Rs 8 lakh in DSP Tax Saver, Invesco Tax Plan, ICICI Tax Plan, Mirae Emerging Blue Chip and SBI Multi Cap. Right now, we are not putting any money to these schemes, but do let us know if we need to redeem/switch these to consolidate our portfolio further.
A: You can continue to invest in Mirae India Opp Fund, ICICI Bluechip Fund, Kotak Standard Multi Cap Fund, Motilal Multi Cap 35 and HDFC Small Cap Fund. You can redeem from SBI Blue Chip Fund, HDFC Midcap Opp Fund and L&T Emerging Businesses Fund.
You can invest in Reliance Large Cap Fund, SBI Focused Equity Fund and Kotak Emerging Equity Fund. We would suggest you to not put any more money in Franklin India Smaller Companies Fund and invest that money in any of our recommended funds above. Motilal Long-term Equity and Axis Long-Term Equity are both ELSS funds. We would suggest you to invest in ELSS funds only if you don’t need liquidity and your sole aim is to save tax. Else, you can invest in other open-ended diversified equity schemes.
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