I am planning to distribute my investment of Rs 25,000 in Quantum Long Term Equity- Rs 10,000,
Franklin India Bluechip or HDFC Top 200- Rs 7,500, HDFC Mid-Cap Opportunities- Rs 3,500, IDFC Premier Equity- Rs 3,500.
My investment timeline is 15 years, with a target of Rs One crore. I plan to increase the total SIP amount by 5-10 per cent. Please advise if this is a right portfolio mix? I have selected two large-cap and two mid-small cap funds for this portfolio. Do I have too many funds?
Assuming a return of 12 per cent on your investments, you can comfortably achieve your goal with the current plan. Even if you don't increase your future investments you will be able to achieve your target with ease, but it's good that you plan to increase your SIP by five to ten per cent annually. The count and the choice of funds is good and will provide you with the right mix. With the current portfolio, your large-cap allocation will be around 61 per cent and rest will be in mid caps. With an investment horizon of 15 years you can go with a 60-40 allocation to large and mid cap stocks. It also diversifies your portfolio. Your top three sectors account for 47.42 per cent and out of the total 136 holdings your top five holdings account for 19 per cent.