Index funds help to save on expenses

I’m a 27-year-old working professional. So far, I have been investing in Mirae Large Cap Fund, SBI Magnum Global Fund and ICICI US Bluechip Growth Fund, contributing ₹5,000 via SIPs. I’m looking to diversify and include an ELSS fund to my portfolio, apart from investing in a debt fund. I’m looking to hike my monthly investments to upwards of ₹30,000. Please advise whether the above plans are compatible with the existing portfolio.

—Rajat Yadav

In my opinion, you can modify both your large-cap investments into index funds (such as a Nifty 100 fund or a combination of Nifty 50 and Nifty Next 50 funds) and save on expenses without sacrificing on returns. To add to this portfolio, you should consider tax-saving and debt funds. Please ensure that the tax-saving investments are kept in line with your tax planning in terms of amount allocation. Apart from these, you can also add a mid-cap fund. Overall, you can add Aditya Birla Sun Life Tax Relief 96, SBI Short Term Debt Fund and DSP Midcap Fund to your portfolio.

Srikanth Meenakshi is foun-ding partner, PrimeInvestor.

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