Ask ET Mutual Funds: Which fund should I pick for my wife?

I am 38 years old and I started investing in mutual funds in last September. I would like to know whether I have chosen the right funds. I am investing Rs 5,000 in SBI Bluechip Fund, Rs 5,000 in Mirae Asset Emerging Bluechip Fund, Rs 3,500 in Kotak Select Focus Fund and Rs 1,500 each in DSP BlackRock Small and Midcap Fund, Franklin India Prima Fund, Franklin Small-Mid Cap Growth Fund. Also, I want to start investing for my wife, approximately Rs 10,000 per month with a horizon of 10-15 years. Which funds should I pick?

-- Preenu Abraham

Veena Malgonkar, Certified Financial Planner, KM Wealth Solutions responds:

I assume that you mean Franklin India Smaller Companies fund as one of the funds you are investing in.

That means you are investing Rs 5,000 per month in a largecap fund (SBI Blue Chip fund), Rs 3,500 per month in a multicap fund (Kotak Select Focus – which takes concentrated bets in its portfolio), and Rs 9,500 per month. in midcap funds.


Although midcap funds do out perform in the long run, at this stage they are really overvalued. Also, both Franklin India Prima Fund and Franklin India Smaller Companies fund have many common shares in their portfolio. You don’t have to invest in both of them. Instead of investing in Prima fund, you can invest in Franklin Prima Plus fund, a multicap fund.

You can consider investing one largecap fund (Mirae Asset India Opportunities fund: Rs 3,000), one multicap fund (Motilal Oswal Most Focused Multicap 35 Fund: Rs. 4,000) and one midcap fund (HDFC Midcap Opportunities fund: Rs 3,000).


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