I want to invest Rs 60,000 to Rs 1 lakh annually in mutual funds. Currently I am invested in HDFC Core & Satellite. Could you suggest a way to build my portfolio? I am also considering investing in HDFC Tax Saver, ICICI Prudential Discovery Fund and Magnum FMCG Fund. How much should I invest in an ELSS?-Vikas Parte
When investing in ELSS or tax planning funds you can claim for deductions under Section 80C on investments with an upper limit of Rs 1 lakh each financial year. You can consider utilising the entire sum as it is well within the amount that you plan to invest.
If HDFC Core & Satellite was your first investment, it was not the best of funds to start investing. Being a multi cap fund it is risky compared to the broad diversified equity funds. The way to building a portfolio is to start with an investment goal and time horizon for investments. Starting with broad diversified funds such as a large-cap category or a large- and mid-cap category of funds is a good idea before getting into other categories of funds to achieve the necessary diversity that a portfolio should have.