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Diversify investments across assets as well as fund houses

You can consider schemes from various fund houses like Mirae, Canara Robeco, Kotak, Invesco and DSP, which have also done well across all categories of schemes

I am 29 years old and have systematic investment plans (SIPs) in Axis Bluechip ( 8,000), 4,500 each in Axis Multicap and Axis Midcap and 4,000 in Axis Focussed 25. All are direct growth. I get a salary of 65,000. My monthly expenses are about 20,000. I am planning to start another SIP in Axis Small-Cap ( 6,000). I want to increase my SIPs in Axis Bluechip by 3,000, in Axis Multicap by 1,500 , Axix Midcap by 1,500 and Axis Focussed 25 by 2,000. I also invest 1 lakh every year in Public Provident Fund (PPF) (current amount 7.5 lakh) and 7,000 in Employees’ Provident Fund (current amount 3 lakh) every month. I have also invested 10 lakh in bluechip stocks and have 3 lakh in fixed deposits (FDs). My goals are to buy a flat of 45 lakh in three years and have a corpus of around 4 crore for retirement in 25 years or so. Please advise.

—Mayank Gupta

Your existing investments come to 23.50 lakh (not counting your SIPs). In addition, you plan to invest 35,000 per month via SIPs. You have a good scheme selection. However, one concern is that you have considered only Axis Mutual Fund schemes. While you have diversified within asset classes by picking large-, mid-, multi-, focused and now small-cap, but all the schemes come from the same fund house. Axis schemes have done well but still it is recommended that you diversify within fund houses. You can consider schemes from various fund houses like Mirae, Canara Robeco, Kotak, Invesco and DSP, which have also done well across all categories of schemes. This will truly diversify your portfolio. However, pick one scheme from each category instead of adding multiple schemes. You have also invested in direct large-cap stocks. You may alternatively consider adding to the large-cap mutual fund scheme of yours or even consider investing in a Sensex or Nifty scheme.

Your financial goals of buying an apartment in three years means you need to take a loan and for that the incremental investments may be considered to be done in a debt based instrument such as short-term debt mutual funds to take care of down cash payment. Also, to achieve your long-term goal of retirement, it would be essential for you to save not only regularly and have a disciplined approach but also to increase the savings every year as your salary increases.

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

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