Ask ET Mutual Funds: Mutual fund schemes for a beginner

I am 30 years old and a government servant with a monthly salary of Rs 30,000. I have recently started investing in mutual funds and my present investments, SIPs and EMIs are: PPF: Rs 1,000, SBI Bluechip Fund: Rs 500, HDFC Balanced Fund: Rs 500, Sundaram Rural India Fund: Rs 250, Reliance Focussed large Cap Fund: Rs 200, Life insurance term plan: Rs 600 per month, Bank Loan EMI: Rs 7,500. My SIPs in mutual funds are for 10 years and would like to increase the same by Rs 1,000. Kindly guide whether I have selected the right funds and a scheme to start a new SIP of Rs 1,000. Can I start SIP in ELSS for long term?
- Gajanan

Saurabh Mittal, CEO, Circle Wealth Advisors, responds:
It is good that you have not taken the conventional path of investing in a life insurance policy. Taking a term plan and managing investments individually is better option in most cases. All your investments are dedicated to largecap equity funds. You can invest the additional amount in a small and mid-cap fund. Make sure that these investments are enough for you to reach your goals after 10 years. Please note that any portfolio needs a periodic review. You may be a long-term investor but you would need to periodically review the schemes, ideally annually. SIP in ELSS should only be started from tax saving point of view and not from return point of view.


Also see: Nine mutual fund portfolios for SIP investments

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