My portfolio is down 7%. Should I exit my schemes?

My query is that my funds are not performing since the last few years. I have the following schemes in my portfolio:
1) Principal Emerging Bluechip fund - Rs 3,000
2) L&T Emerging Business Fund - Rs 1,500
3) Motilal Oswal Multicap 35 - Rs 3,000
4) Kotak Standard Multicap Fund - Rs 2,000
5) Mirae Asset Emerging Bluechip Fund- Rs 2,000
6) Axis Long Term Equity Fund: Rs 1 Lakh lump sum (since 2015)

I also have an ICICI Max Builder II (ULIP)
Please suggest what I should do? My portfolio is down 7 per cent since the last year.
I am 29 years old. Please suggest me the best funds to invest. I also want to invest in two ELSS funds. My income is Rs 48,000 per month. My investment horizon is minimum 10 years to maximum 25 years and my goal is to own a house in Bangalore and a retirement corpus of Rs 15-16 crore in 30 years.
--AmMy Bisht

Deepali Sen, Founder, Srujan Financial Advisors, responds:

Your choice of funds is fine and so is the portfolio mix, only the input (amount invested per month) needs to go up. Because if you invest Rs 25,000 or Rs 30,000 per month for the next 25 years at 12% CAGR (compounded annual growth rate) you could end up with a corpus of Rs 4.7 or 5.6 crore respectively.

These equity investments offer volatility and asymmetry of returns as their DNA, portfolio value being 7 per cent down is not unusual or a cause of concern. Keep the faith and stay invested, the returns are more likely to recover in the long-term (at least 7 years)


ULIP schemes are very high on expenses and therefore avoidable.

Whether Rs 1 crore in the term plan is sufficient will depend on the present value (current value in today's term- assuming you were to pass away) of all the pending responsibilities/duties you have towards your senior and junior dependents . The sum assured (on all insurance policies held) should be more than equal to the present value (as mentioned above)