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Business News/ Mutual Funds / News/  Index funds help to save on expenses
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Index funds help to save on expenses

Please ensure that the tax-saving investments are kept in line with your tax planning in terms of amount allocation

Photo: iStockPremium
Photo: iStock

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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Published: 02 Jun 2021, 09:10 PM IST
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