What should be the amount and tenure of my investments

I am actually very confused as to where to invest and how much. It would be great if you would spare 5-10 minutes to resolve my confusions. I am currently investing in the following: 1. BSL Front Line Equity - 1000/month (*Investing since Jan 2017), 2. Franklin Tax Shield - 1500/month (*Investing since Jan 2017), 3. Mirae Asset Emerging Bluechip Fund - 1000/month (*Investing since Jan 2017). Now I am looking forward to invest upto 12k per month in mutual funds. Mentioned following my plan going forward from next month: HDFC Balanced Fund (G) - Tenure 3/5 Years 1000, Brila Sun Life Frontline Equity - *Looking to increase investment from 1000/month - Tenure 5/7 Years 3000, ICICI Prudential Value Discovery Fund - G - Tenure 5/7 Years 2500, Franklin Tax Shield - *Looking to increase investment from 1500/month - Tenure 7/10 Years 2500, Mirae Asset Emerging Bluechip Fund - *Looking to increase investment from 1000/month - Tenure 3/5 Years 3000. Sir please let me know the following: 1. Have I chosen right funds? 2. I want to keep a couple of funds for investing for long term i.e 10/15 Years which funds should I go ahead with? 3. My current investment in ELSS is 1500/ month, should I increase the investment or buy one more ELSS fund? 4. If yes then which to buy DSP BlackRock tax saver or Birla Tax relief? 5. Do I need to change my funds Or amount or Tenure? I know you must be very busy in your schedule but it would be very kind of you to advice me on the above?

Jun 20, 2017 by Anand Ved, | Mutual Fund

Today I have replied to the query which you posted through DISQUS comments section. That query and the one you have posted here are partly same. Therefore, I am replying to the part which was not there.

While investing in mutual funds, always know what is your risk taking ability and the investment horizon. Once these are clear, there should not be any confusion.

The schemes you are currently investing and also the ones which you have shortlisted for future investment are all good. But remember, as these are equity/ equity oriented mutual funds, the risk is high and the investment horizon should minimum be 5 years.

Increase in investment in ELSS funds should be done based on your tax saving requirements. Investments in ELSS funds, upto Rs 150,000, qualify for tax rebate under Section 80C of the Income Tax Act 1961. If tax saving is not required, then do not invest in ELSS Funds.

Among the two ELSS Funds, please note that both are very good funds and you can invest in any one of them.

Please do not change any funds or the investment amount as of now. Change the funds / amounts only after annual review of their performances.

Remaining invested in equity funds for as long as you can is the best option as you benefit from compounding. However, which funds you should pick and choose for keeping for the long term can be decided later. First, watch the performances of these funds for next 5 years and then take a call.

Hope the above helps you ! Thanks for writing to Advisorkhoj !!

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