Diversify the MF portfolio, allocate up to 10% to international equity funds

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I want to invest a lump sum ??15 lakh for the wedding of my daughter, who is 12 years old. Do you want to suggest suitable options?

– Komal

(Questions answered by Sanjiv Bajaj, Co-Chairman and Managing Director, Bajaj Capital)

Given your goal, we assume that your risk profile will be moderate over the long term for the next 10 to 12 years. You can build a complete mutual fund portfolio consisting of equity and 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 and Kotak Small Cap Fund in the equity category, while you can also consider the Aditya Birla Sun Life Balanced Advantage Fund, ICICI Prudential Asset Allocator FoF & DSP Dynamic Asset Allocation Fund in the Hybrid category.

A remarkable point here is that you can make a stock investment by going the 12 month systematic transfer plan (STP) route, while you can also make a hybrid investment in a lump sum. This way your portfolio will be diversified across asset classes, categories, plans and asset management companies. It is also advisable to continue to review your portfolio at least once a year.

Can you help me suggest a mutual fund with investment in international trade and secondly invest in them.

-Rajeshwary

To diversify the overall portfolio of your mutual fund, up to 10% can be allocated to international equity funds. It will give you geographic diversification and offer the opportunity to invest in sectors that are not available in India. There are several international funds available, but you can choose Franklin India Feeder – US Opportunities Fund, ICICI Pru US Bluechip Equity Fund, or Motilal Oswal Nasdaq 100 FOF.

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