Ask ET Mutual Funds: Should I increase my SIP amount?

I am 35 years old and working in an IT firm. I have a 2.5-year-old kid. My long term goals are: to save for my kid's education and retirement. I have following investments in MFs:
DSP BlackRock Micro Cap Fund- Growth - SIP: Rs 2,000/month; Start Date: 01-Nov-16
Franklin India Bluechip Fund- Growth - SIP: Rs 2,000/month; Start Date:03-Mar-2015
HDFC Equity Fund - Regular Plan- Growth - SIP: Rs 1,000/month; Start Date: 14-July-2011
HDFC Taxsaver Fund - Regular Plan- Growth – SIP: Rs 2,000/month; Start Date : 9-Aug-2010
ICICI Prudential Value Discovery Fund – SIP: Rs 1,000/Month; Start Date: 9-Apr-2015
L&T India Value Fund – SIP: Rs 5,000/month; Start Date: 1-March-2016

Please review my portfolio and let me know -
- if I have to discontinue any of the above MFs.
- increase my SIP value in any of the funds
- Should I invest in more funds. Please suggest suitable funds.

I have some saving in PPF and no loans to repay.

--Dhiraj Kuckian

Abhishek Gupta, Certified Financial Planner, Moat Wealth Advisors, responds:

Your goals look achievable if you continue the SIPs for the tenure of the goals. Do consider a term plan of Rs 1.5 crore and health insurance plan to protect your family.

Investing in an equity mutual fund through SIP is the best way for a salaried employee to invest their hard-earned savings for achieving various financial goals. You have an SIP of Rs 13,000 active in six funds, out of which HDFC Tax Saver is for Section 80C deduction (ELSS).


You have small amounts in many funds which is leading to over diversification. I would recommend you to STOP the SIPs in HDFC Equity Fund, ICICI Prudential Value Discovery Fund and DSP Blackrock Micro Cap Fund.

You can restart the SIP of Rs 4,000 in Franklin India Bluechip Fund which is a largecap fund. In the end you will have only three SIPs in following funds: L&T India Value Fund – Rs 5,000, Franklin India Bluechip Fund – Rs 6,000 and HDFC Tax Saver – Rs 2,000.

If you would like to start additional SIPs, you can look at adding in ICICI Prudential Value Discovery Fund. Don't go beyond five funds as there is duplication of stocks and overdiversification.

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