Am I investing right to create a good corpus for my retirement?

I am 47 years old and currently investing Rs 22,500 via monthly SIPs in ICICI Prudential Banking and Financial Services Fund, Franklin India Smaller Companies Fund, SBI Bluechip Fund, Aditya Birla Sun Life Frontline Equity Fund, Franklin India High Growth Companies Fund, ICICI Prudential Focused Bluechip Fund, HDFC Balanced Fund. Am I investing right to create a good corpus for my retirement? I started these investments a year ago. I can invest up to Rs 30,000 per month.
--Aswath Singaraju

Abhay Shah, a certified financial planner, responds:

I believe over-diversification of portfolio leads to lower returns. So, it is always advisable to have two to three funds in your portfolio if you are investing for a longer term as it looks like in your case.


Hence, I will advise you to minimize the number of funds from seven to a maximum of four. You can look at infra sector funds and smallcaps for better returns, if you have a risk-appetite for them.

For infra funds, Invesco India Infrastructure Fund is a good bet for long term and in smallcaps you already have Franklin India Smaller Companies Fund which is a good scheme. In addition, you can invest in Motilal Oswal MOSt Focused Multicap 35 Fund.