Where should I invest to earn higher returns?

I am a 26-year-old IT professional. I have a personal loan and a car loan. I am investing Rs 2,000 per month in SBI Magnum Taxgain Scheme - Direct (G), DSP BlackRock Tax Saver Fund - Direct (G), and Reliance Tax Saver (ELSS) Fund - Direct (G).

These mutual fund schemes are showing negative returns. I am planning to invest for 10 years. I do not have any goals to achieve. I am looking for higher returns. Please suggest me where should I invest and how should my portfolio look like?

-- Prayas Gupta

Rishab Parakh, founder, Money Plant Consultancy, responds:

All your current SIP investments are in ELSSs or tax-saving schemes. These mutual fund schemes have a three-years lock in period. Most of the diversified funds like ELSS have been giving negative or lower returns in the short term, but they will recover in the long run.

You mentioned that you had a car and a personal loan. You should plan for closing these loans if the interest rates are higher than 9 per cent. As your investment horizon is 10 years, you should add some quality midcap and multicap schemes like L&T Midcap Fund, Canara Robeco Emerging Equity Fund, and SBI Magnum Multicap Fund to your portfolio. Also, you should link your investments to your financial goals.