I am 28 and investing Rs 13,500 through SIPs every month. I invest Rs 2,000 in BSL Dividend Yield Plus, BSL Frontline Equity, DSPBT Top 100 Equity, HDFC Top 200, ICICI Prudential Focused Bluechip and Kotak Gold ETF. I also invest Rs 1,500 in Quantum Long Term Equity. I am moderately aggressive and plan to invest in these funds for the next ten years, are these funds right to invest?- Jayaramakrishnan
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Seven funds in a portfolio is diversification in number and not style. You should consider reducing your holdings to five funds which can be achieved by reducing the holding in large- and large- and mid-cap funds to one each instead of two. You can invest Rs 4,000 each in these two categories and continue investing in other funds as allocated. However, ten years is a long time and fund performance can go up and down in this period and hence you should monitor the investments in these funds and review their performance at least once a year for any changes if necessary.
This article was originally published on August 24, 2011.
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