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Mutual Fund Corner: Should I make changes to my mutual fund portfolio?

Updated : November 20, 2018 04:48 PM IST

Want to invest in mutual funds but don’t know how to go about it?

Get all your mutual fund related queries answered by our expert, Feroze Azeez, deputy chief executive officer, Anand Rathi Wealth Management, on our show Mutual Fund Corner.

Q: 30-year-old Amit Raul writes to us from Gujarat. My goals are for:

Daughter's education after 18 years: Rs 30 lakh ( As per today's expenses)
Daughter's marriage after 24 years: Rs 20 lakh (As per today's expenses)

Retirement plan after 30 years: Rs 1.5 crore (As per today's plan)

My investment are as below:
1) Provident Fund: Rs 60,000 per year.
2) ICICI Prudential Insurance Policy: Rs 60,000 per year (7 years term. Already 4 completed)

3) ICICI Wealth builder ULIP plan: Rs 60,000 per year (10 years term. Already 3 years completed)

On equity part:
1) Axis Bluechip: Rs 2,000
2) L&T Midcap: Rs 1,500
3) Parag Parikh Long Term Equity: Rs 1,500
4) Invesco India Contra : Rs 3,000
5) SBI Small Cap: Rs 2,000

6) Reliance Pharma: Rs 2,000

My total Investment is Rs 10,000. Please review my portfolio and advise if any changes required.

A: You can continue to invest in provident fund and ICICI Pru Insurance Policy. In order to fulfill all your goals, we would suggest you to increase your SIP amount every year. For ICICI Wealth Builder ULIP Plan, we would suggest you to keep your investments and insurance separate. You should avoid investing in traditional policies and ULIPs as they generate around 4-5 percent returns and do not beat inflation in the long run.

Since you already have an insurance policy, we would suggest you to redeem your investments from ULIPs and invest in equity mutual funds. For mutual funds, you can continue to invest in Axis Bluechip Fund, L&T Mid-cap and SBI Small-cap Fund. You can redeem from Invesco India Contra, Reliance Pharma and Parag Parekh Long term equity and invest in Kotak Standard Multi-cap, Canara Robeco Emerging Equities fund.

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Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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