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I’m 36 and am planning to invest 30,000 monthly in the following funds for the next 24 years: DSP Midcap Direct Plan, Franklin India Feeder Franklin US Opportunities Direct, Axis Long Term Equity Fund, Mirae Asset Tax Saver Fund, Edelweiss Greater China Equity Off-shore Fund, Axis Smallcap Fund, Axis Midcap Fund, Canara Robeco Blue-chip Equity Fund, Parag Parikh Flexi Cap Fund, Kotak Emerging Equity Fund, SBI Magnum Gilt Fund, L&T Midcap Fund, Mirae Asset Emerging Blue-chip Fund, DSP Flexicap Fund, PGIM India Global Equity Opportunities Fund, Nippon India Gold Savings and DSP World Gold Fund. Could you please look into the same and guide me whether I’m doing the correct investments or not?

—Somiya Chakravorty

You have a good plan to invest a sizeable sum each month with a long-term horizon. However, you have far too many funds selected. Yes, you need to spread risk and avoid letting a few funds take over your portfolio. But going overboard and holding too many funds reduces the effectiveness of diversification. It makes it difficult to track and manage the portfolio.

Invest the 30,000 as follows: 6,000 each in Mirae Asset Large Cap, Axis Long Term Equity and Kotak Emerging Equity (note that the Axis fund is a tax-saving fund and each SIP instalment will be locked in for three years). 4,500 each in Motilal Oswal Nasdaq 100 Fund of Fund and Aditya Birla SL Corporate Bond Fund and 3,000 in Nippon India Gold Savings. The gold fund is provided since you have listed it in your fund choices. Please bear in mind that gold can spend a long time delivering low to no returns and soars when equity markets correct. Therefore, avoid making high allocations to gold in your portfolio. Review your portfolio once a year to ensure that your funds continue to be quality performers.

Srikanth Meenakshi is foun-ding partner, PrimeInvestor.

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