Tax-saving investment must meet 80C needs

Sep 2, 2021
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Please guide me regarding my systematic investment plan, which is as follows: 1,000 in Nippon Small Cap Fund; 1,000 in ABSL Small Cap Fund; 1,000 in HDFC Midcap Fund; 1,000 in Nippon Midcap Fund; 1,000 in ABSL Frontline Equity Fund; 1,000 in SBI Bluechip Fund; 1,000 in ICICI Value Discovery Fund; 1,000 in Axis Nifty 100 Fund; 1,000 in L&T Tax Saver Fund and 1,500 in Axis Bluechip Fund. My investment horizon is 10 years. Shall I keep investing in these funds?

—Name withheld on request

 

The first thing I’d recommend for your portfolio is consolidation. You don’t need four large-cap funds for a monthly investment of 4,500. Just one fund, a low-cost passive-investing index fund, would do. Similarly, you can consolidate your small-cap funds into the Nippon fund and the mid-cap funds into the HDFC fund. Please ensure that the tax-saving investment you are making is sufficient to meet your 80C tax deduction requirement.

Srikanth Meenakshi is founder, Primeinvestor.in.

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