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    Will these mutual funds take care of my obligations like children’s education, marriage?


    If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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    I am investing Rs 6,000 in HDFC Small Cap Fund (for daughter's higher education), Rs 6,000 in Franklin India Smaller Companies Fund (for son's higher education), Rs 5,000 in Franklin India Focused Equity Fund (for my retirement), Rs 7,000 in SBI Small Cap Fund (for daughter's marriage) and Rs 6,000 in Axis Long Term Equity Fund (for my retirement) through SIPs. My investment horizon is 15+ years. My daughter is two years old and my son is one year old. My retirement date is 30th June 2046. I am also investing Rs 10,000 in Sukanya Samriddhi Yojana for my daughter's marriage. I have started these investments in June 2019.

    I have a LIC Jeevan Anand of Rs 7 lakh, postal life Insurance of Rs 10 lakh, and a term insurance from TATA AIG for Rs 75 lakh. Will these investments take care of my future obligations? Please suggest
    ---Nikhil Raj

    Vishal Dhawan, Founder, Plan Ahead Wealth Advisors, responds:

    You have too many small cap funds in your mutual fund portfolio. Even though you have a long investment horizon, it is better to have a blend of different schemes in the portfolio that take exposure to different market capitalisations. I would recommend you to stop your SIP in SBI Small Cap Fund and invest the money in an index fund like the UTI Nifty Index Fund. It will help you to take an exposure to large caps at a lower cost. You are also investing for your retirement through an ELSS fund. You should consider investing the money in an open-ended multi cap fund with a good track record like the Parag Parikh Long Term Equity Fund, as it is a good idea to have the flexibility to make changes in your portfolio if required.
    (If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

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