Q&A: Mutual funds

Value Research

Investing for Son

For my elder son (23-year old), I am investing Rs 4,000 monthly in BSL Frontline Equity, HDFC Equity, ICICI Prudential Dynamic and Reliance Equity Opportunities Fund. And for my younger son (18-year), I am investing in IDFC Premier Equity, HDFC Top 200, and Reliance Regular Savings Equity. Are these funds good enough?

--Mayur Shah

Both the portfolios are well diversified and made of highly rated funds with a proven track record. Assuming your older son’s portfolio earns annualised 12% returns over the next five years, it will accumulate Rs 14.34 lakh and your younger son’s portfolio earning a similar return will accumulate Rs 10.76 lakh. You can continue investing in these funds.