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Should I reshuffle my existing mutual fund portfolio

I am 35 years of age. Following are my MF investments: 1. L&T India Special Situations Fund (Growth) - Invested Rs. 6000 (including entry load, etc.) when it was launched (as Fidelity India Special Situations Fund), about 10 - 11 years ago, 2. Reliance Money Manager Fund (Growth) - Lumpsum investment of Rs. 25,000 in February 2016, 3. Birla SL Frontline Equity Fund - Growth (Direct plan) - SIP of Rs. 2000 per month, started in April 2017, for 2 years. I am still invested (Rs. 6000) in the L&T MF. Should I invest more in this scheme, or should I redeem it partially/fully? Or do you recommend maintaining status quo? Professionally, I am a free-lancer with variable monthly income of Rs. 42,000 to Rs.48,000 per month. Some months the income is even zero. I have a little over Rs.5 lacs in PPF as of today (3 years' worth of investment). I want to invest about Rs.3000 to Rs.5000 more per month. Please suggest some good MF schemes which will create wealth in the next 3 to 5 years. I am open to moderate risk. Or do you think I can take higher risk? Kindly advise?

Apr 11, 2017 by Ajay Rathod, India  |   Mutual Fund

Apologies for replying late. Please note the following -

1. You can move out of L&T India Special Situations Funds as it has not been performing as well as the peer group of funds in diversified equity fund category. The redemption proceeds can used in investing in other top performing diversified funds like - Birla Sun Life Advantage Fund, Kotak Select Focus Fund, Mirae Asset India Opportunities fund, ICICI Multicap Fund or Franklin India High growth Companies Fund.

2. Investment in Reliance Monet Manager for emergency purpose is fine and shall get you better return than savings bank account.

3. Birla Sun Life Frontline Equity Fund is a good choice for your long term SIP.

4. Since your income is variable and some months you are not getting any income at all, you should invest more in Reliance Money Manager Fund whenever you have some investible surplus.

5. Let the PPF investment grow till 15 years as this will help you meet some long term financial goals.

6. Since you can take moderate risk only and want to invest 3-5,000 per month, you should invest in balanced funds. You can choose from L&T India Prudence Fund, ICICI Balanced Fund and SBI Magnum Balanced Fund. your investment horizon for this should be at least 4-5 years if not more.

7. You should not take higher risk at this point in time in your career as you do not have a sustainable income. You are young and let things settle at the income front and then you can think of taking higher risk.

Hope the above answers all your queries. Thanks for writing to us.

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