Should you spend money on worldwide fairness mutual fund?

Can you counsel mutual funds with funding in a global fairness fund and secondly shall one spend money on them.

—Name withheld on request

To diversify your total mutual fund’s portfolio, one can have as much as 10% allocation in worldwide fairness funds. It is not going to solely provide you with geographical diversification but additionally provide alternatives to spend money on sectors that aren’t obtainable in India. There are a number of worldwide funds obtainable. However, you could select Franklin India Feeder–US Opportunities Fund, ICICI Pru US Bluechip Equity Fund or Motilal Oswal Nasdaq 100 FOF.

I need to make investments ₹15 Lakh (one time) for the wedding of my daughter who’s 12 years previous. How ought to I make investments, I don’t know about funding planning? 

—Mahesh

Considering your objective, we’re assuming your danger profile will likely be Moderate – Long Term for the following 10 -12 years at the very least. You might create a complete Mutual Fund portfolio consisting of Equity & Hybrid funds with a 60:40 ratio, respectively. Parag Parikh Flexi Cap Fund, UTI Flexi Cap Fund, Mirae Asset Emerging Bluechip Fund, Canara Robeco Emerging Equities Fund, Nippon India Growth Fund & Kotak Small Cap Fund in Equity class whereas Aditya Birla Sun Life Balanced Advantage Fund, ICICI Prudential Asset Allocator FoF & DSP Dynamic Asset Allocation Fund in Hybrid class could be thought of. It is a noteworthy level right here that the Equity funding ought to be carried out by the best way of choosing 12 months systematic switch plan (STP) route whereas Hybrid funding could be carried out on Lumpsum. This method your portfolio will likely be diversified throughout asset class, class, scheme and asset administration firm. It can also be advisable to maintain reviewing your portfolio at the very least annually.

Sanjiv Bajaj, joint chairman and managing director, Bajaj Capital. Queries and views at mintmoney@livemint.com

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