Should I spend money on present or new funds for long-term targets?

I’m 37 years outdated and I’ve been investing ₹5,000 every in L&T India Value, ICICI Prudential Value Discovery, HDFC Index Nifty 100, HDFC Index Nifty Next 50, Parag Parikh Tax Saver, Canara Robeco Emerging Equities, Edelweiss Balanced Advantage, Mirae Asset NYSE FANG+ ETF FOF (fund of fund), S&P 500 Top 50 ETF FOF and Kotak Nasdaq 100 FOF, moreover ₹3,500 per 30 days every in Mirae Asset Tax Saver, Mirae Asset Emerging BlueChip, Mirae Asset LargeCap and ICICI Prudential Regular Savings, ₹2,500 in Axis SmallCap and ₹1,500 in Edelweiss MidCap. 

I’ve additionally invested ₹10,000 every within the latest NFOs (New Fund Offers) reminiscent of Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index Fund and Edelweiss Crisil IBX 50:50 Gilt Plus SDL June 2027 Index Fund, for my retirement bills and my son’s training targets in 15 years. How way more ought to I spend money on the NFOs? 

—Name withheld on request 

Your investments have the potential to generate good long-term returns. However, having SIPs in 16 fairness funds is over-diversification and will typically be counterproductive. Ideally, 6 to 10 funds in a long-term portfolio are enough. Within these funds, you may create a mix of various classes of fairness funds the place some allocation will be made to small cap and worldwide funds based mostly in your risk-taking capability. Most of the funds you’re investing in have an excellent monitor report. But there may very well be an inexpensive overlap after we have a look at the general portfolio stage. You might think about lowering the variety of funds, e.g., spend money on one worldwide index fund as a substitute of three. 

Given your long-term targets, you may spend money on fairness funds and will not essentially want debt funds. If you’re salaried and have cheap EPF contribution, this can do the job of diversification into debt. Investing the identical quantity in fairness will enable you to create a better corpus. Avoid investing in NFOs as you already maintain 18 funds.

Harshad Chetanwala is co-founder at MyWealthGrowth

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