Ask ET Mutual Funds: I have Rs 5 lakh to invest. Suggest some good schemes.

I am 75 years old and my investment horizon is three to five years. I have invested Rs 1 lakh in each of these funds: Birla Dynamic Bond Fund, Birla Sun Life Medium Term Plan, Franklin Dynamic Accrual Fund, Franklin Corporate Bond Opportunities Fund, HDFC High Interest Fund- Dynamic Plan, ICICI Prudential Long Term Plan, Reliance Dynamic Bond Fund, TATA Dynamic Bond Fund and UTI Income Opportunities Fund. These are all about to complete three years. Which ones of the above mentioned funds are not likely to do well? Should I withdraw my money from some of them? I have another Rs 5 lakh to invest. Suggest some good schemes.

--Naomi Saxena

Neeraj Chauhan, CEO, The Financial Mall, responds:


All schemes in your portfolio are of the debt category with a split between dynamic and accrual. The schemes are good and you can keep them for a long period of time. As the schemes have already completed three years, they qualify for long term capital gain. If you are comfortable with some volatility, you can look at HDFC Equity Savings Fund, ICICI Prudential Equity Income Fund and SBI Magnum Equity Fund for your new investment. These schemes will generate a little higher returns. But, if you don’t want to get into equities, you can invest in your existing plans like ICICI Prudential Long Term Plan, Birla Dynamic Bond fund, HDFC High Interest Fund- Dynamic Plan.

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