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I have been investing in the following funds every month for the past three years: DSP Tax Saver direct plan ( 3,000); ICICI Prudential US Blue-chip equity direct plan ( 5,000); Canara Robeco Emerging Equity Fund direct ( 2,000); L&T India Value Fund direct ( 2,000); and Kotak Gold Fund ( 5,000). My horizon is 15 years. Is my portfolio well diversified? If not, what changes should I make?

—Name withheld on request

You are investing 17,000 a month in a variety of funds across markets. While that is good, the allocations to individual segments can be fine-tuned. At present, you are investing 30% in a US large-cap fund, and another 30% in gold. This leaves only 40% to domestic equity market investments that are split across diversified funds and a mid-cap tilted fund.

The allocation between domestic equity market and others should be reverse—that is, 60% going to the former and 40% to everything else. There are two main reasons for this: Domestic equity market is likely to be the best long-term bet for returns, and their tax treatment is the most favourable. Towards this, I would remove 1,500 from each of gold and US market allocations and invest them in a domestic equity fund. Seeing that you are lacking a pure large-cap fund investing in India, adding an index fund to your portfolio would be a good idea. As you move forward, you may want to add some debt funds into the mix as well, but for now, this portfolio should be fine.

Srikanth Meenakshi is co-founder, PrimeInvestor.in.

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