I am 27 years old, and I have been investing around ₹25,000 in SIPs for the last three years. I am now planning to invest up to ₹50,000 aggressively for about 5-10 years. I have monthly investments of ₹10,000 in Franklin Smaller Cos, ₹5,000 in Franklin Focused Equity fund (formerly High Growth Cos fund), ₹7,500 in SBI Small Cap, ₹7,500 in L&T Emerging Bluechip, ₹5,000 in Mirae Asset Emerging Bluechip, ₹5,000 in Mirae Asset India Equity, ₹5,000 in DSP BR Tax Saver and ₹5,000 in Axis Long Term Equity (ELSS). Please tell me how I should modify my portfolio in terms of fund selection and allocation.
—Kannan Anandakrishnan
You are certainly investing in a highly aggressive portfolio. Not only is it all equity, your portfolio is also concentrated on the highly risky mid- and small-cap segments of the market. You are currently investing 60% (₹30,000) of your monthly amount in this segment, and the remaining 40% is going to broadly diversified funds (including the ELSS funds which invest across market segments). You are young, and are consciously taking high risk with your investments. However, the time frame of your investment between 5 and 10 years is a bit on the short end for such a portfolio. So you may want to set your mind to handle a longer period of investing.
