Every month, I wish to invest about Rs 30,000. I've selected a few investment funds to consider:
1. Tax-saving DSP Fund
2. Long-Term Equity Fund Axis
3. Microcap DSP Fund
4. Franklin Fund for Smaller Businesses
5. SBI Bluechip and Principal
6. BSL MNC Fund and Birla Sun Life Top100 Fund
7. Sun Life Birla Equity Fund
8. Banking and financial services provided by Birla Sun Life
9. L&T Value Fund for India
10. Kotak Select Focus Fund and Emerging Fund
11. Magnum Midcap SBI Fund
I plan to invest about 5,000 rupees in the DSP Micro Cap and Franklin Smaller Companies Fund and 2,000 or 1,500 rupees in the remaining schemes. Please advise me on what to do. I have a 5- to 10-year time horizon for my investments.
Sandeep Rai
Abhay Shaha, Certified Financial Planner, responds:
Your investing horizon ranges from five to ten years. Five years is considered the medium period, while ten years is considered the long term. Investment diversification is beneficial. Overdiversification, however, will unquestionably reduce your return on investment.
I'll suggest that you go for