Ask ET Mutual Funds: Is my allocation appropriate?

I am 27 years old and recently got married. Below is my portfolio: Axis Long Term Equity Fund: Rs 5,000 per month, SBI Blue Chip Fund: Rs 2,000 per month, Franklin India Smaller Companies Fund: Rs 3,000 per month. I have also registered in HDFC Balanced Fund via an monthly SIP of Rs 10,000. I am open to taking high risk. I am considering SBI Blue Chip Fund and Franklin for short term goals of around 5-10 years and Axis for building retirement corpus. Is my allocation appropriate?
-- Nishant Jain

Chokkalingam Palaniappan, Chief Financial Planner, Prakala Wealth Management, responds:

In your portfolio both Axis Long Term Equity and SBI Blue Chip Fund are multicap (that is, large+midcap) funds. As the name suggests, Franklin India Smaller Companies Fund is a mid and smallcap fund. HDFC Balanced is a balanced fund. Axis Long Term Equity Fund’s AUM (Assets Under Management) has surpassed Rs 11,000 crore and we are seeing a slight slowdown in its performance. Hence, you may stop SIP in Axis Long Term Equity Fund and start an SIP in DSP BlackRock Tax Saver Fund.


Assigning Franklin India Smaller Companies Fund to your long-term goals will be better. You may assign HDFC Balanced Fund for your goals that will arise after 5 years.

Since you are willing to take high risk, you may look at a mixture of multicap and small & midcap funds. Your monthly investments of Rs 20,000 could be allocated in the following way:

DSP BlackRock Tax Saver Fund: Rs 5,000 per month
ICICI Prudential Multicap Fund: Rs 5,000 per month
Franklin India Smaller Companies Fund: Rs 5,000 per month
L&T Midcap Fund: Rs 5,000 per month

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