Ask ET Mutual Funds: Where should I invest for my daughter’s education?

I am 35 years old, a salaried employee in the private sector. My dependent family includes a wife and a five-year-old daughter. My goal is to accumulate adequate corpus over the next 15-20 years for my daughter's education, wedding and my retirement. I have been investing Rs 4,000 in each fund on a monthly basis via SIP since one year.

1. DSP BlackRock Micro Cap Fund
2. Franklin India High Growth Companies Fund
3. SBI Bluechip Fund
4. SBI Magnum Multicap Fund

All are growth options. I would like to invest Rs 8,000 more per month and looking for suitable suggestions. I am open to an aggressive portfolio with a goal to create a good corpus. Also, advice me if I need to switch from any of the existing schemes or reallocate the SIP amounts.

--Mehul Adhia

Chokkalingam Palaniappan, Director, Prakala Wealth Management, responds:

DSP-BR Microcap comes under small and midcap category. It has good track record and you can continue investing in the scheme. Franklin India High Growth Companies Fund is performing decently and hence you can continue investing in the scheme.

SBI Bluechip and Multicap Funds although are very good schemes, but they have slowed down a bit in the recent past. Since you are open to aggressive portfolio and your requirement is farther away, you may look at more of small and midcap funds. You can stop SIPs in these funds and add that amount (Rs 8,000) with additional investment of Rs 8,000 and invest as follows:

L&T Emerging Businesses Fund: Rs 8,000 per month
Canara Robeco Emerging Equities Fund: Rs 8,000 per month

Keep in mind that small and midcap funds come with higher risk-reward ratio. It is important to continue SIP investments during down markets in these funds.

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