Have I invested in too many funds and how to reduce it

Either you invest through SIP or lump sum, the fund names can remain same excepting where the fund is not taking lump sum or not taking any subscription at all. In your case, Mirae Asset Emerging Bluechip Fund can take SIPs upto Rs 25,000 per month but will not accept any lump sum. DSP BlackRock Micro Cap Fund will neither take lump sum nor SIPs.

Coming back to risk on your portfolio, overall it is risky as you are investing mostly in midcap funds and one each in thematic and sector funds. Overall fund selection looks goods, excepting one or two, and the portfolio is suitable if your risk taking ability is high. The two funds, we would like to comment on is 1) L&T Emerging Business Fund – you have chosen this fund due to its recent performance but there are better funds in this category with consistency of return and long term track record. 2)DSP BR natural resources – This is a thematic fund and therefore has the highest risk. You should not hold on to this fund for long time and exit after making desired profits. No theme continues to play for the long run or for ever, therefore, you have to be cautious.

You have mentioned that debt component in your portfolio is around 25%. Which funds you have invested in, Gilt Funds (SBI Gilt)? I think you could have done a better asset allocation between equity and debts by investing some part of your portfolio into balanced funds. Balanced funds invest in both, equities and debts and are more tax efficient (Taxation for balanced fund is same as that of equity funds).

We think, you need to strategize a bit about your fund selection and create a revised portfolio with lesser number of funds so that you can get the desired results after 10 years (your investment horizon).

Thanks for writing to Advisorkhoj.