Should I maintain separate portfolios for different financial goals

I have 2 goals, marriage and education of my daughter. Now, should I have separate MF portfolios for these two goals or only one portfolio covering investments for both the goals together? If separate portfolio for each goal is to be kept then how many funds should be there in each portfolio and how to transfer money from equity to debt in that particular portfolio as each goal nears its due date?

Jan 30, 2019 by Lalit Ramteke, Kupwara | Mutual Fund

Ideally you should have separate portfolios as the goal times in this case may be different.

With regards to how many funds you should have in your portfolio is a function of what is your monthly investment amount. For example, if the investment amount is Rs 5,000, one fund is fine. But, if the investment amount is Rs 10,000, 20,000 or say 50,000 then the number of funds could be 2,3 or 5 respectively. There are no set rules here.. However, keeping minimum number of funds in the portfolio is desirable as you can monitor the investments better.

Transferring money from equity to debt and vice-a-versa can be done using switch option. You can switch from one fund to the other only in the same AMC.

We are sharing two articles on goal which you may find useful -

https://www.advisorkhoj.com/bslmf...

https://www.advisorkhoj.com/iciciprumf...

And to choose the best performing funds, you may check this link - https://www.advisorkhoj.com/mutual-funds-research...

Wishing you the best!

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