How to build a portfolio for long term investment with tax saving

Building a mutual fund portfolio for the long term investment depends on the risk profile of the individual, his investment goals and the investment horizon.

We neither know your risk profile nor your investment goals. Also the word 'long Term' has different meaning to different investors. For some, 5 years can be long term and for some it could be 10-15 years or even more.

Therefore, if you can help us with the above information about you, we will be able to answer the query well.

However, to give you some idea about building the portfolio for long term, we are assuming your risk profile as moderately high and investment horizon 10 years. You can invest in diversified equity and ELSS Funds. We have suggested ELSS funds also because you wanted to save taxes too!

Out of your planned Rs 25,000 investment per month, you can invest Rs 12,500 per month in ELSS Funds (You can save maximum Rs 150,000 in a year) and the rest Rs 12,500 in diversified equity funds.

Since we have considered you as a moderately high risk taker, we have not suggested any funds other than equities.

Amongst diversified equity funds, you can select ICICI Prudential Value Discovery Fund, Birla Sun Life Advantage Fund, Kotak Select Focus Fund and SBI Multi-cap Fund.

Please see a comprehensive list from here - https://www.advisorkhoj.com/mutual-funds-research/top-consistent-mutual-fund-performers

Do write back to us with details of the information that we suggested. Thanks for writing to Advisorkhoj.