I am a 49-years-old non-resident Indian (NRI). I have been investing a total of Rs1.7 lakh through systematic investment plans (SIPs) in: Birla Sun Life Frontline Equity (Rs30,000), SBI Bluechip (Rs40,000), HDFC Mid-cap Opportunities (Rs40,000), ICICI Prudential Value Discovery Fund (Rs40,000), Franklin India Smaller Companies (Rs20,000) since the last 2 years. All SIPs are direct—growth plans. This is for my retirement and I have 10 years more to invest. I want to know: is my portfolio less diversified, as the SIP amount is large? Should I continue the same portfolio or is any change required?
—Sabu Jose
You are right, that is a pretty sizable SIP portfolio you have here. With an investment of Rs1.7 lakh per month, if you continue this investment for another 10 years, you will likely wind up with a corpus of about Rs5 crore (assuming 10-12% annualized returns). Presently, you are investing 40% of your SIP instalments in large-cap oriented funds (SBI and Aditya Birla), 35% in small- and mid-cap funds (Franklin and HDFC), and the remaining in a diversified value fund (ICICI).
