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Should I invest the extra amount in Aditya Birla Sun Life Tax Relief 96?

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

ET Online|
Oct 25, 2019, 11.54 AM IST
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for retirement
I am 33 years old. I am investing in the following mutual funds:
Aditya Birla Sun Life Tax Relief 96: Rs 2,500
L&T Tax Advantage Fund: Rs 2,500
Axis Long Term Equity Fund: Rs 5,000
Mirae Asset Midcap Fund: Rs 5,000

I can invest extra Rs 2,500 to Rs 3,000. Should I add the amount to ABSL Tax Relief 96 or choose another fund? I have a decent risk appetite. My investment horizon is 15 to 20 years, but for now I'm looking at the next five years. My goals are: buy a house and build a retirement corpus.
--Gaurav Sharma

Subir Jha, Founder, BuckSpeak, responds:

You may add the additional amount to ABSL Tax Relief 96. It is a fund with more than 23 years of track record. It has performed well in different market cycles. Between the four mutual funds, you have a fair exposure between the large cap and mid cap.

Your exposure in the small cap is low and if you can take extra risk, consider adding a small cap fund like Nippon India Small Cap Fund/ DSP Small Cap Fund (don’t be worried by its recent underperformance, it has done well in the long term). I would also recommend a minimum 10-year investment horizon in a small cap fund, especially if you are investing through SIP. The investment can be for your retirement goal.
(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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