I have invested Rs5,000 each in Edelweiss Equity Opportunities Fund, HDFC Balanced Fund, ICICI Prudential Long-term Fund, and L&T India Prudence Fund, via SIPs. I started these 11 months back. I can invest Rs20,000 more in mutual funds. Are my choices correct or should I exit any schemes? Please also suggest some new schemes to invest in.
—Radha Arora
Your SIP portfolio currently has a good mix of equity and debt funds. The overall asset allocation ratio of your portfolio is close to 60:40 between equity and debt. Of the four funds you hold, you have one pure equity fund (Edelweiss), one pure debt fund (ICICI Pru. fund), and two balanced funds that on average have about 30% in debt and remaining deployed in equity, and thus the 60:40 allocation. The funds that you are investing in are good, but apart from the balanced funds, they could do with periodic scrutiny to ensure that they are performing well.
