Ask ET Mutual Funds: Can I invest in Tata PE Equity Fund?

I am 34 years old. I have SIP investments of Rs 5,000 each in DSPBR Microcap, SBI Bluechip, Franklin India Flexicap, BSL Frontline Equity Fund and ICICI Prudential Value Discovery Fund. I want to invest a lumpsum of Rs 2.5 lakh each in two equity funds for a long period (more than 10 years). Can I invest in Tata PE Equity Fund and L&T Special Situations Fund? Also, suggest a good debt fund in the current scenario to invest Rs 2.5 lakh for a long period (more than 10 years) or should I go with short term and ultra short term funds? – Manu S Pillai

Dilshad Billimoria, founder and chief financial planner, Dilzer Consultants, responds: The ideal way to make investments is after a risk profile analysis and considering your risk appetite, goals, time horizon and objective. You have invested in a combination of small and midcap, multicap, thematic and largecap funds. It is a good combination.

For Investment in fixed income or debt, dynamic debt funds would play well on modified duration and at the same time react positively to interest rate changes made by RBI. Look at a combination of dynamic debt with short term and medium term debt. In Dynamic Debt category, I would recommend ICICI Prudential Long Term Plan. In medium term debt, I would recommend Birla Treasury Optimiser Fund- G.


For a lump sum investment with a time horizon of more than 10 years, I would recommend Tata Pure Equity fund which is now called Tata Large Cap Fund. L&T Special Situations is a thematic/contra fund. I Would recommend investing in it only if your risk profile is aggressive and your investment horizon is long.

Please note fund recommendations are valid for 15 days only and subject to market dynamics and the best performers keep changing.

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