Ask ET Mutual Funds: Should I reduce the number of schemes in my portfolio?

I want to know whether my SIPs are in the right mutual funds. Shall I reduce the number of mutual funds in my portfolio? Here’s my SIP portfolio:

SBI BLUE CHIP FUND: Rs.5000,
Birla Sunlife Front Line Equity Fund: Rs.3000,
Birla Sunlife Front Line Equity Fund: Rs 2000,

ICICI Prudential Focussed Blue Chip Equity Fund: Rs.1000,
ICICI Prudential Value Discovery Fund: Rs3000,
Franklin India High Growth Companies Fund: Rs4000,
DSP Black Rock Microcap Fund: Rs 2000,
Franklin India Smaller Companies Fund: Rs 3000,
HDFC Balanced Fund: Rs 4000,
Axis Long Term Equity Fund: Rs 5000,
Birla SunLife Tax Relief 96 Fund: Rs 3000,

I can invest another Rs 10,000 per month. Which funds should I choose?

--Sreeni Guvv

Nisreen Mamaji, Chief Planner at MoneyWorks Financial Advisors, responds:

In the absence of details such as your age and goals for investing, I am assuming that you are in your mid-thirties and are investing for wealth-creation and retirement, possibly for a 20 year tenure.

In this case, your asset allocation should be 40 per cent in largecap diversified funds, 30 per cent in midcap funds and 30 per cent in multicap or flexicap funds. Please re-align your portfolio accordingly with your increased SIP amount. ELSS funds may be linked to a particular goal as well.

Continue with Birla Sun Life Frontline Equity Fund, SBI Bluechip Fund and ICICI Prudential Focused Bluechip Fund. You may consider DSP BlackRock Small and Midcap Fund instead of Franklin India Smaller Companies Fund and DSP BlackRock Microcap Fund. You can also consider Franklin India Flexi Cap fund instead of Franklin India High Growth Fund. For ELSS investments, you may consider Franklin India Taxshield and HDFC Tax Saver Fund. Also, HDFC Balanced Fund is an equity-oriented balanced fund which is not required in your asset allocation.


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