Is it okay to continue with SIPs for 5 years?

I have started SIPs (systematic investment plans) of ₹5,000 each in the following schemes: DSP Flexi-cap and Axis Mid-cap. Is it fine if I continue them for five years? I am 35 years old.

—S. Rajasekaran

A flexi-cap fund can invest in large-, mid- and small-cap companies and switch between them. Many of them use derivatives to retain equity fund taxation even with an effective large debt allocation. For an aggressive portfolio such as this (all equity with substantial allocation to mid- and small-cap segments), it is imperative that you invest in funds with a proven track record. This would be especially true considering that the portfolio is of a limited size. The funds in your portfolio are both good, but you can diversify further by adding another flexi-cap fund—Kotak Flexicap fund, for example—to the mix. You can also add an index fund such as ICICI Prudential Alpha low vol 30 fund of fund so that you can spread your ₹10,000 evenly across 4 funds.

Srikanth Meenakshi is the founder of Primeinvestor.in.