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I am 61 years old and have been investing a total of 1 lakh every month in the names of five of my family members (including myself) over the last five years in the following funds: Aditya Birla Sunlife Frontline Equity Fund— 10,000, Franklin India Focused Equity Fund— 15,000, Franklin India Smaller Companies Fund— 30,000, HDFC Mid-Cap Opportunities Fund— 15,000, Kotak Emerging Equity Fund— 15,000 and Kotak Flexi Cap Fund— 15,000. I am investing 20,000 per person every month and plan to do so for the next five years. I am looking at good returns in the long term and need to know if I should make any changes in these systematic investment plans (SIPs).

—Name withheld on request

Ideally, six to eight equity funds are good to build the portfolio for the long term. However, you need to review the portfolio at least every six months. Some of these funds have been underperforming their peers over the last few years. You need not redeem the underperforming funds during the review but can invest subsequent SIPs in better options. You are investing 60% in mid cap and small cap funds that carry higher risk. To make it more balanced across market capitalization in the underlying portfolio and diversify across asset management companies you can consider making the following changes in the SIP.

One, stop investing in Aditya Birla Sunlife Frontline Equity Fund and start Mirae Asset Large Cap or Canara Robeco Bluechip Fund. Increase the SIP amount to 20,000. Two, stop Franklin India Smaller Companies Fund and start Parag Parikh Flexicap Fund with SIP amount of 20,000 instead of 30,000. You can also re-evaluate HDFC Mid-Cap Opportunities Fund after a few months from a investment perspective as the performance of the fund has improved in the near term. If it continues to do well compared to its peers, you can carry on with the SIP.

*Harshad Chetanwala is co-founder at MyWealthGrowth.com.

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