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Ask RoboMy age is 34. My monthly salary is around 55, 000. I am regularly investing in below mutual funds Reliance small cap fund – 2000 Reliance retirement fund – wealth creation scheme – 5000 Aditya birla sunlife small cap fund – 1000 Aditya birla sunlife government – 1000 Aditya birla sunlife frontline equity – 1000 Just few days back, i have started two sips – one is sbi magnum multi cap – 1000 Mirae asset emerging bluechip fund – 2000 Please suggest if my portfolio is ok or needs to be updated. Request you to mention what needs to be added. My goal is to save money for future use, to buy a house and retirement.
Taranpreet singh asked 5 months ago
1 Answers
Roboadviso answered 5 months ago

It is good that you are building through SIP as in long term the portfolio’s would provide good returns and help you achieve your goals.
You are doing a SIP into Birla Govt securities fund. This is debt fund which is slightly risky as it invest in longer tenure govt bonds which are highly sensitive to interest rates. If you are building the corpus for contingency then you should look at ultra short term funds or low duration funds as these are not that much sensitive to interest rates. You should stop the SIP in this fund and start in any one of the following fund.

  • Franklin India Ultra Short Bond Fund

 In equity funds your portfolio is diversified among the following categories i.e large cap, Mid cap, Multi Cap & Small cap.
Reliance retirement Fund is not among the top performing funds in the Multi Cap category and also this fund does not have very less assets. There are other funds in this category which have performed well than this fund. Around 41% of our monthly investment is going into only one fund which is on a higher side. At any point of time we should not have more than 25% of our total portfolio in one scheme as any under performance would impact the overall portfolio returns.
You should replace the Reliance Retirement Fund with the following funds.

  • Motilal Oswal Multi Cap 35 fund 
  • Kotak Standard Multi Cap Fund 

The remaining funds are good funds and you should continue your sips into It.
Happy Investing!

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