I have been investing 2,000 per month via systematic investment plans (SIPs) in the following schemes for the last one year—HDFC Top 100, Axis Focused 25, ABSL Frontline Equity, ABSL Focused Equity, ABSL Equity, SBI Magnum Multicap, SBI Focused Equity, SBI Equity Hybrid and ICICI Prudential Bluechip. I have also been investing 4,000 in SBI Small Cap. I have moderately high risk appetite and want to build a corpus of 3 crore in 15 years for my daughter’s education and to pay off my home loan of 65 lakh. Am I over-diversified? Also, please suggest some funds to invest 30,000.

—S. Varma

You are currently investing 22,000 over 10 different schemes. You have allocation in three large-cap, three focused, two multi-cap, one hybrid and one small-cap fund. There is no need to have more than one large-cap fund. Out of the three, you can continue with just ICICI Prudential Bluechip. Focused category can have only Axis Focused 25. In the multi-cap space, you can continue with SBI Magnum but this will lead to high exposure in SBI AMC, so stop both the multi-caps and start an SIP in DSP Equity for diversification among fund houses. The hybrid and small-cap category can continue to have both the funds. This will result in a total of five schemes. You may add one more scheme in the large-and-mid-cap space—Mirae Asset Emerging Bluechip. The additional 30, 000 can also be invested in the above six schemes. The current monthly saving of 22,000 over the next 15 years will result in a corpus of 39.60 lakh and assuming an annualized return of 12%, the corpus will become 1.1 crore. If we add the 30,000, the principal corpus becomes 93.6 lakh, which at 12% earnings will make the corpus 2.6 crore. If the earnings rate is assumed at 13.5%, the corpus crosses the target of 3 crore. Alternatively, you may consider increasing the SIP amount over the next few years.

Surya Bhatia is managing partner of Asset Managers. Queries and views at mintmoney@livemint.com

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