Have I chosen right mutual funds for my portfolio?

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I am 31 years old. I have a moderate to high risk appetite. I started investing at 27, it took a year for me to understand the industry and invest accordingly. Right now, my portfolio is:

Long-term SIP:
ELSS : Aditya Birla Tax Relief 96 Fund, Axis Long Term Equity Fund (Rs 4,500)
Mid cap: L&T Midcap Fund (Rs 1,000)
Large & Mid Cap: Mirae Asset Emerging Bluechip Fund (Rs 2,000)
Large Cap: ICICI Prudential Bluechip Fund (Rs 1,000)
Global: Franklin US Feeder Fund (Rs 1,000)

Short-term SIP:
Money market: Franklin India Saving Fund (Rs 1,500)
Banking & PSU: Axis Banking & PSU Fund (Rs 1,000)

I also lump sum investments of Rs 10,000 each in L&T Money Market Fund and Axis Banking & PSU Fund.
Medium-term SIP:
ICICI Balanced Advantage: Rs 500 via SIP

I also have STPs of Rs 1,000 each for 10 months in Canara Robeco Conservative Hybrid Fund and ICICI Prudential Balanced advantage Fund.

Please let me know your thoughts on my portfolio.
- Vaibhav Madhavan

You should adopt a goal-based investment strategy. Since you have been investing in three different baskets for your different goals, it would be easy for you to tweak it a bit. You should identify your financial goals and find out how much money you need to achieve those goals after certain years. To calculate your target corpus, you should first find out the current cost of the goal and provide for annual inflation to arrive at a realistic target. Once you know the target amount, you can calculate how money you need to invest every month to achieve those target corpuses.

L&T Midcap Fund-Growth ★★★★
  • -0.92%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.6 YearsTime taken to double money
  • 2.28%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.8 YearsTime taken to double money
A few quick observations about your portfolio. Your long-term equity portfolio is spread too thin. You should try to build a focussed portfolio that is in line with your risk profile. It is not wise to spread your investments across too many categories and schemes when you are investing in a modest amount. Try to have a focused portfolio. For example, a moderate investor should invest mostly in multi cap funds. If he wants to diversify to reduce the overall risk, he may take a small exposure to large cap schemes. Similarly, an aggressive investor can invest mostly in mid cap schemes and take a small exposure in large cap scheme.

You have included a banking & PSU fund in your short-term portfolio. These schemes are not mean to park short-term funds like liquid funds and ultra short duration funds. You should have an investment horizon of at least three years to invest in these schemes.

Similarly, you have included dynamic asset allocation funds or balanced advantage funds in your medium-term portfolio. These schemes are ideal for an investment horizon of at least five years as they invest mostly in stocks.

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