The Core and Satellite Portfolio

I am 23 year old and save around Rs 30,000 per month. I plan to invest Rs 25,000 every month in the funds listed below. As I don't have any short term liabilities, I want to build a huge amount in 10-15 years. Please suggest whether the funds I have selected can meet my requirement? If not please suggest me a better portfolio
- Prashant

Mutual funds    Amount (Rs) BSL Dividend Yield Plus   Rs 3,000 DSPBR Equity   Rs 3,000 Fidelity Tax Advantage   Rs 3,000 HDFC Mid-Cap Opportunities   Rs 3,000 HDFC MIP Long-term   Rs 3,000 ICICI Prudential Focused Bluechip Equity   Rs 3,000 IDFC Premier Equity Plan A   Rs 2,000 Reliance Equity Opportunities   Rs 2,000 UTI Opportunities   Rs 3,000

It's encouraging to see a 23-year old taking serious interest in mutual fund investing for the long-term. Investing in diversified equity funds is the ideal way to accumulate desired wealth over time, and you should be able to achieve this goal. You have a good selection of funds, however, you don't need to invest across nine funds to achieve this, especially when several of them have over-lapping investment themes.

We suggest, you go with a core and satellite approach, which will give your mutual fund portfolio the necessary stability and growth for long-term wealth creation. We have short-listed 5 funds for you from your existing set of nine. You should look at investing 70-80% in the core funds and the remaining in the satellite funds. This way the core will take care of stability and the satellite helps your portfolio earn the necessary push to improve the performance of the overall portfolio.

Core funds Scheme    Category DSPBR Equity   Multi-Cap UTI Opportunities   Large- and mid-cap Fidelity Tax Advantage   Equity: Tax Planning Satellite funds     BSL Dividend Yield Plus   Mid- and Small-Cap IDFC Premier Equity Plan A   Mid-and small cap