I am investing Rs 10,000 via SIP in the following mutual funds:
Mirae Asset Emerging Bluechip Fund: Rs 5,000
Kotak Standard Multicap Fund: Rs 3,000
Franklin India Smaller Companies Fund: Rs 2,000
Please review my portfolio. Is SBI Small Cap Fund a better option than Franklin India Smaller Companies Fund?
—Harmanpreet Singh Khalsa
Vishal Dhawan, Founder, PlanAhead Wealth Management, responds:In the past, equity as an asset class has delivered comparatively better returns in the long term. I would suggest you to stick with your decision to accumulate a corpus for your long term goals through SIPs in equity funds. However, you also need to be comfortable with the volatility in equity schemes. I would ask you to increase the SIP amount with every increase in your income.
While both Franklin Smaller Companies Fund and SBI Small Cap Fund are good schemes, you can consider switching to the SBI fund. You can stay invested in the Franklin India Smaller Companies Fund to avoid exit cost and taxes.
The other funds you have chosen are good for long-term wealth creation. You can continue your SIPs in them.