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

I am 32 years old and I wish to increase my SIP investments by Rs 5,000 in two to three funds. I already have five SIPs of Rs 1,000 per month in Franklin India Bluechip Fund, BNP Paribas Midcap Fund, DSP BlackRock Micro Cap Fund, Birla Sun Life Equity Fund and Reliance TOP 200 Fund. Should I invest in existing SIPs or should I start SIPs with some new funds? I want to build a lumpsum corpus in a span of 10 years. – Amit Madhu

Deepesh Mehta, Certified Financial Planner, Grow Wealth, responds:

Ideally, one should not have too many funds in their portfolio though there are no fixed rules. Your existing funds are good and these five funds have captured majority of the stocks in the largecap, midcap and smallcap segments. Kindly increase your SIP in the existing funds: Birla Sun Life Equity Fund Rs 2,000, BNP Paribas Midcap Fund Rs 1,000, Franklin India Bluechip Rs 1,000 and Reliance Top 200 Rs 1,000.


By doing this, your allocation in largecap would be 30 per cent, mid and small cap would be 30 per cent and in multicap it would be 40 per cent. You should have this ideal allocation as you have a time frame of 10 years.

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