Should I continue with my ELSS mutual funds?

I am investing in two ELSS, DSP Tax Saver Fund and Axis Long Term Equity Fund. I have been investing Rs 7,000 and Rs 4,000 in these schemes respectively for two years with a horizon of 10 years. I have Rs 2 lakh which I want to invest for three years. I also plan to start a monthly SIP of Rs 30,000. I am planning to divide this SIP into two: Rs 15,000 for short term goals, say, five years, and Rs 15,000 for long term goals, say, 15 years. I have a moderate risk appetite and I am 27 years old. Please suggest some good schemes to invest and should I continue with my ELSS schemes?
-- Dhawni Dharamshi

Pramod Sharma, Citrine Financial Advisors, responds:

You have chosen good tax planning mutual fund schemes or ELSSs.

You can invest Rs 2 lakh in a short term debt scheme like ICICI Prudential Short Term Fund or Kotak Bond Short Term Plan.


For your SIP of Rs 30,000, I would suggest different equity mutual fund categories.

You may go for large cap or multi cap funds such as ICICI Prudential Bluechip Fund, Mirae Asset Large Cap Fund, Kotak Standard Multicap Fund and HDFC Equity Fund to invest for five years.

For 15 years horizon, you can choose some good mid and small cap funds like HDFC Mid-Cap Opportunities Fund, Mirae Asset Emerging Bluechip Fund and L&T Midcap Fund.