Where should I invest Rs 30,000 per month?

I want to invest approximately Rs 30,000 per month. I have shortlisted some funds for investments:
1. DSP Tax Saver Fund
2. Axis Long Term Equity Fund
3. DSP Micro Cap Fund
4. Franklin Smaller Companies Fund
5. Principal & SBI Bluechip
6. Birla Sun Life Top100 Fund and BSL MNC Fund
7. Birla Sun Life Equity Fund
8. Birla Sun Life Banking and Financial Services Fund
9. L&T India Value Fund
10. Kotak Emerging and Select Focus Fund

ADVERTISEMENT

11. SBI Magnum Midcap Fund
I am thinking of investing approximately Rs 5,000 in DSP Micro Cap and Franklin Smaller Companies Fund and Rs 2,000 or Rs 1,500 in rest of the schemes. Please suggest what should I do? I am investing with a long-term horizon of 5-10 years.
--Hemant Sharma

Abhay Shaha, Certified Financial Planner, responds:

You have 5 to 10 years of horizon for your investments. Let me tell you, five years is medium term and 10 years is long term. Diversification is good for investment. However, over-diversification will definitely slow down your return on investment.
I will advise you to go for

Banking - ICICI Prudential Banking & Financial Services,
Infra - Kotak Infrastructure & Economic Reform Fund
Small Cap - DSP BlackRock Small and Mid Cap Fund
Mid Cap - Mirae Asset Emerging Blue Chip Fund
Multi Cap - Kotak Select Focus Fund OR Large Cap - Mirae Asset India Opportunity Fund


(If you have any mutual fund queries, message ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)