Publication details: Money Manager – CNBC Bajar – 09-09-2015
Responses, opinion and view from Kartik Jhaveri.
Question sent by J.J. Sanghvi :-
I want to start an SIP for my children’s education and other requirements. I can stay invested for long term, i.e. more than 15 years. I have not set any target as to what corpus I need.
I would like to invest in the following manner:
SIP of Rs. 3,000 each in 5 Diversified Equity Fund schemes.
SIP of Rs. 3,000 each in 5 Small & Midcap Equity Fund schemes.
SIP of Rs. 3,000 in 4 ELSS schemes, to avail benefit under 80C.
Please advice me as to how to proceed.
Advice given:
- Investing about Rs. 10,000 @ 15% in equity can give you about Rs. 65 lakhs in 15 years and Rs. 1.5 crores in 20 years.
- You could look at an allocation of
- 60% diversified funds – Rs. 9,000 each into 2 diversified funds.
- 20% midcap funds – Rs. 6,000 into 1 midcap fund.
- 20% sectoral funds – Rs. 3,000 into a banking fund and Rs. 3,000 into a pharma fund.
- For tax saving use 1 fund. This is automatically a diversified category for you.
3. Do not use so many funds. Such extra diversification will not help.
