Where should I invest my RD proceeds

I am new to mutual funds and have started a few SIPs. Please review and advise if I need to make any changes. My risk appetite is aggressive and investment horizon is 5-10 years.

Reliance Small Cap Fund - (Direct, growth) : Rs 2,000/month
SBI Small Cap (Direct, growth) : Rs 2,000/month
Axis Long Term Equity (Direct, growth) - Rs 3,000/Month

Apart from these schemes, I have an RD of Rs 3,000 with Standard Chartered Bank.
I also have a matured RD of Rs 77,000 that I need to invest. Please advise where should I park this money, if possible suggest some tax saver funds . I might need this money after 3-4 years.
-- Nishant Singh

Vivekh Pathak, Certified Financial Planner, responds:

You choice of funds is good. You should review your portfolio every six months to one year.

Since you have a time horizon of more than five years, continue investing via SIPs. When your goals come near, reduce the risk associated with your portfolio by reducing your equity exposure. Consider shifting to safer funds at least 2-3 years in advance and continue SIPs in the switched schemes.


You may consider investing in largecaps, balanced funds, short-term funds in equal proportion for the Rs 3,000 that you are putting in the RD. Mutual funds are more tax efficient.

For your matured RD of Rs 77,000, in current Scenario, I would suggest to park the funds of Rs 77,000 into a liquid fund and do an STP into Axis Long Term Equity Fund.