I am 36 years old and have an aggressive risk appetite. My goal is to save for my retirement, buy a car in a year’s time and a house in four years. I have the following monthly systematic investment plans (SIPs) in my portfolio. Franklin India Prima Plus (₹4,000), Franklin India High Growth Companies (₹4,000), Mirae Asset India Opportunities Fund (₹3,000), Mirae Asset Emerging Blue Chip Fund (₹5,200), Aditya Birla Frontline Equity (₹3,000), SBI Blue Chip (₹3,000), ICICI Value Discovery (₹11,000), ICICI Focussed Blue Chip (₹9,200), ICICI Banking and Financial Services (₹2,000), Franklin India Smaller Companies (₹1,000) and SBI Pharma Fund (₹1,000). All are direct growth plans. Please suggest how I can achieve my goals considering the above portfolio.             

—Abhishek Tiwari

You have a SIP book of 46,400 spread across 11 schemes in your portfolio where the number of schemes are on the higher side. The portfolio allocation has duplication across the asset categories. For example, there are three large-cap schemes, two schemes each in multi-cap and the sectoral category, besides one scheme each in focused, large-and-mid-cap, value and small-cap category. You can reduce two large-cap schemes as in the large-cap space there is no need to have more than one scheme. You can even reduce one scheme from the multi-cap category as the focused category is somewhat similar to multi-cap albeit with a smaller number of stocks portfolio. The scheme selection is good but you need to take a call on whether you need to have exposure in sectoral funds as you have SIPs running in two sectoral funds and instead you can let the fund manager decide on the stock picking unless you have a high conviction in the said sectors.

Coming to your goal planning, you have a short-term goal of buying a car in the next one year but as the goal is a luxury goal, equity asset class can be considered for even a short-term goal. The medium-term goal is after four years —to buy a house—and here it is assumed that you need to provide for partial payment from the corpus and the remaining can be taken as loan.

Typically, a year before the property is to be purchased, the said partial amount proposed for buying the property can be created by starting a systematic transfer plan (STP) from the equity schemes to ultra short debt funds and this can be spread over 12 months to average out the equity transfers.

For your retirement goal, you can continue with your equity investments. At the same time, ensure that there is enough liquidity available for any emergency corpus.

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Surya Bhatia is managing partner of Asset Managers. Queries and views at mintmoney@livemint.com

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