Home >Money >Q&a >Even out equity risks with debt funds

I want to build a retirement corpus in 15 years. My monthly expenses are about 50,000. I have a conservative to moderate risk profile. I have the following systematic investment plans (SIPs)—Mirae Asset Large Cap ( 7,000), SBI Nifty Index ( 7,000), Mirae Asset Emerging Bluechip ( 7,500) and Aditya Birla Sun Life Tax Relief 96 ( 7,000). Are these schemes appropriate to reach the goal?


You’ve given yourself adequate years to build your retirement corpus. You can use online retirement calculators to check the total amount you’d need to retire and how much you’d need to save per month. While your funds are quality ones, you are concentrated on a single fund house (Mirae) and on large-caps. You can take on some mid-caps to boost returns even within your moderate risk level. You need debt funds as well to balance out the equity risks.

You can rejig your SIPs. Reduce your SIP in Mirae Asset Large Cap to 5,000, SBI Nifty Index fund to 4,000 and Mirae Asset Emerging Bluechip fund to 5,000. Start an SIP of 1,500 in Invesco India Growth Opportunities and 6,000 in Kotak Corporate Bond. Do continue with Aditya Birla Sun Life Tax Relief 96. Overall, this portfolio will give you about 20% debt exposure. Note that the inclusion of debt will protect your portfolio but can reduce its overall return potential.

If you want to increase your SIP amount, you need about 7,000 for a 20% debt allocation; you can go higher to 25% as well. Invest this in Kotak Corporate Bond. You can adjust the rest of the SIPs like this— 6,000 in Mirae Asset Large Cap, 4,000 in SBI Nifty Index, 6,500 in Mirae Asset Emerging Bluechip, 4,500 in Invesco India Contra and 7,000 in Aditya Birla Sun Life Tax Relief 96. Note that each SIP instalment is locked in for three years in tax-saving funds.

Suggest some plans for tax saving and wealth creation. I already have total SIPs of 8,000 in the tax-saving funds of Aditya Birla, Axis, DSP BlackRock and Mirae Asset.

—Syed Meraj Fatmi

You hold too many tax-saving funds. These funds are very similar to each other and holding several will mean significant duplication. You should retain Axis Long Term Equity and run the 8,000 SIP in that. For general wealth creation, you can consider the following funds: Mirae Asset Large Cap, Kotak Standard Multicap, Invesco India Contra and Aditya Birla Sun Life Corporate Bond (debt fund). Always maintain some investment in a debt fund, as it will keep your portfolio volatility in check. If you have a higher risk appetite, you can add Kotak Emerging Equity.

Srikanth Meenakshi is co-founder, Queries and views at

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