Ask ET Mutual Funds: Should I continue investing in Reliance Retirement Fund?

I am a 34-year-old guy working in an IT company. I am investing through a monthly SIP of Rs 6,000 in SBI Magnum Tax Gain Fund (Growth) for my daughters future use. I also have another monthly SIP of Rs 5,000 in Reliance Retirement Fund (Growth) for my retirement. Both these investments are for the long term of 30 years. Are these funds good? Should I continue with them?
-- Binu Abraham

Shilpa Wagh, Chief Financial Coach, Wagh Financials, responds:

Since you have a 30-year horizon, you have an excellent opportunity to create wealth for both of your goals. Reliance Retirement Fund - wealth creation option has not performed great since its inception in 2015. SBI Tax Gain is an average performer. Since longer duration reduces the market risk, you opt for a little more riskier funds like ICICI Prudential Value Discovery Fund, HDFC Mid-Cap Opportunities Fund, Franklin India Smaller Companies Fund. If you want to invest in tax saver funds to claim tax benefit under Section 80C, consider DSP BlackRock Tax Saver Fund and Axis Long Term Equity Fund. Select growth option in all the funds.

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