I am 25 and unmarried. I invest Rs 1,000 via SIP in HDFC Equity, HDFC Prudence, Fidelity Equity and Franklin India Flexi Cap. I also plan to invest Rs 15,000 via STP. How is my fund selection?
20-Jun-2007 •Research Desk
I am 25 years old and unmarried. Currently I invest Rs 1,000 by way of SIP in HDFC Equity, HDFC Prudence, Fidelity Equity and Franklin India Flexi Cap. I intend staying invested for 18 - 24 months and my current monthly income is Rs. 15000. I am looking to invest another Rs. 1000 - 1500 per month as well as another Rs 15,000. Kindly advice on which fund I should subscribe to. I have been advised to invest the intended Rs 15,000 through STP, if this is correct then could you recommend funds for the same.
Firstly, we would like to congratulate you on a great selection of funds as well as the habit of regular saving that you have developed at such a young age. As of now your portfolio looks geared for success. However, we would recommend a longer investment horizon, considering your age and the fact that you are still unmarried. What you could look at is adding a mid and small cap oriented fund to your portfolio, which will add a little more aggression to your portfolio. For this purpose you can choose from among our rated funds. As regards the investment for the Rs. 15000 is considered, you can simply create a monthly SIP out of this amount as well. We would like to caution you from adding too many funds to your portfolio. A portfolio of five-six funds should be adequate for you.
Through a systematic investment plan you can gradually build your position in these funds over a period of time. Keep a close eye on your portfolio to ensure that no one fund becomes too dominant in the portfolio.