I am a 33-year-old NRI working in the US. My wife and our two-year-old child live in India. I have the following monthly SIPs—₹5,000 each in DHFL Pramerica Large Cap-G, HDFC Mid-Cap Opportunities-G, Tata Hybrid Equity Reg-G and UTI Value Opportunities Reg-G; ₹15,000 in Birla Sun Life Frontline Equity Fund-G Direct Plan; and ₹2,500 in SBI Blue Chip Fund-Reg. Our financial goals are child’s education and retirement. We spend about ₹50,000 a month now and want to continue the same lifestyle post-retirement. Will my current SIP allocation work? We have around ₹50 lakh in NRE fixed deposit (average interest of 6.5%) which I am moving into equities as they mature. Should I invest in debt funds instead of FDs? How much should we invest in gold?
—Rajesh Subash
The current monthly investments done via SIP are for ₹37,500 over six schemes. Four out of six funds being large-cap biased. You need to prune down the number of schemes in the large-cap category due to performance as well as the number of funds, and increase exposure in mid-caps and multi-caps. Since your financial goals of child’s education and retirement are long term, within equity, the level of risk can be increased.
