Have I selected the right funds for long term and short term horizons

I am planning to start SIP in Two Portfolios: 1) Long Term for 15 Years Rs. 2000 pm in each Total Rs. 8000. Funds: SBI Magnum Multicap Fund (G), Franklin India Smaller Companies Fund (G), Reliance Small Cap Fund (G), Sundaram Select Midcap Fund (G), 2) Short Term for 5 Years Rs 6000 pm in each Total Rs. 30000. Funds: ICICI Prudential Long Term Plan (G), ICICI Prudential Balanced Fund (G), DSP BlackRock Focus 25 Fund (G), SBI Blue Chip Fund (G), Birla Sun Life Equity Fund (G). Please advice fund selections and segregation is fine?

Apr 5, 2017 by Amit, Mumbai | Mutual Fund

Your fund selection looks fine as you have selected diversified and mid & small cap funds for your long term investment needs of 15 years! Please note that selection of these funds suggests that your risk taking appetite is very high. If it is so, then continue with your selection as these category of funds can potentially deliver very high returns over long term period.

Again, you have selected schemes from balanced, large cap, ELSS and diversified category for your investment needs of 5 years or so. This selection is also fine and ideal for moderately high risk takers.

Have you invested in ICICI Prudential Long term Advantage fund, which is an ELSS Fund, for saving taxes? If yes, then it is a good selection. Otherwise, investing in ICICI Prudential Focused Blue chip Equity fund, which is a large cap fund, will make more sense.

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