Ask ET Mutual Funds: How should I build my portfolio?

I am 26 years old. I am investing Rs 11,000 in various mutual fund schemes: HDFC High Interest Fund (Rs 5,000/month), DSP Black Rock Micro Cap Fund (Rs 3,000/month), Kotak Select Focus Fund (Rs 3,000). My primary focus is wealth creation over a period. I am also planning to invest Rs 1,500 every month into DSP Tax Saver Fund. How should I go ahead with my portfolio?

--Sandiip Guptaa

Neeraj Chauhan, CEO, The Financial Mall, responds:


Currently, your asset allocation is 45:55 in debt and equity. I would suggest you to increase it to 30:70 if your objective is wealth creation over a long period of time. If you want to invest Rs 1,500 per month for tax saving purpose, you can choose DSP Tax Saver Fund. It will help you save taxes under section 80C. If you don’t necessarily want to invest for tax-saving, choose a multicap fund like ICICI Value Discovery, L&T India Value Fund, Franklin Prima Plus Fund.

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