Is my fund selection okay?

I am a 27-year-old IT professional with a monthly savings of about Rs 25,000. I started investing in mutual funds in late 2015. My current ongoing SIPs are: SBI Bluechip Fund (Rs 4,000), Mirae India Asset Opportunities Fund (Rs 3,000), Mirae Bluechip Fund (Rs 3,000), DSPBR Microcap Fund (Rs 3,000), HDFC balanced Fund (Rs 3,000) and Birla Sun Life Equity (Rs 4,000). I am investing for the long term (5 year plus). I also have some lump sum investments in ultra short term debt funds and liquid funds for short term needs. Can you please take a look at the equity SIPs and let me know if my fund selection is okay or if I should do any changes?
--Harsh Rastogi

Vishal Dhawan, Founder, PlanAhead Wealth Advisors, responds:

Considering that you are using SIPs, I would recommend that you have a minimum investment horizon of 10 years to truly get compounding benefits for your portfolio, and define it as a long-term portfolio. While your overall choice of funds is good, I would think that the number of funds in your portfolio can be reduced without impacting the overall portfolio meaningfully. I would recommend you consider discontinuing the Mirae Emerging Bluechip Fund and the DSPBR Microcap fund, due to their significant exposure to mid and small caps that look overvalued at this point from a historical valuation perspective.

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