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I am 33 years old and have systematic investment plans (SIPs) in these mutual funds: 4,000 each in Axis Bluechip Fund, Axis Long Term Equity, Kotak Standard Multicap and Motilal Oswal S&P 500 Index; and 2,000 each in Axis Midcap and Axis Small Cap. All are direct plans. I have been investing in these for the last six months. I can continue to invest for 15-20 years. I am investing for my retirement ( 50 lakh), children’s education ( 40 lakh) and children’s marriage ( 30 lakh). Earlier, I had SIPs in the following funds, but stopped them as their performance wasn’t good: 4,000 each in Aditya Birla Sun Life Equity Advantage, Aditya Birla Sun Life Equity Hybrid 95, Aditya Birla Sun Life Frontline Equity and HDFC Balanced Advantage; and 2,000 in Nippon India Equity Hybrid.

Can you please let me know your opinion on the current portfolio and my decision about stopping earlier SIPs? Will I be able to achieve the targets with my current portfolio?

—Guruprasad Kulkarni

Your decision to stop the SIPs in your earlier funds is correct as most of them are now slipping below average. Exit them in a phased manner once you cross the exit load barrier and get the long-term capital gains (LTCG) benefit.

For your current investments, you have taken excessive exposure to a single fund house and that is not a desirable thing. While you may have done this for ease of transacting through the asset management company (AMC) directly, it exposes your portfolio to a single AMC’s style. Consider shifting some of the money to fund houses such as DSP Investment Managers, Mirae Asset Mutual Fund and Invesco Mutual Fund.

Besides, you must ensure that you have some exposure to debt investments—through mutual funds or traditional debt options to counter volatility in the equity market.

If your portfolio earns 9-10% returns, you should be able to meet the targets. We hope you have factored inflation into your targeted amounts. To be on the safe side, consider increasing your investments by at least 5% annually.

Srikanth Meenakshi is co-founder, PrimeInvestor.in. Queries and views at mintmoney@livemint.com

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