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
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|