Building Corpus for Real Estate

Q. I am a subscriber of your magazine. I would like to share the details of my portfolio and modify it if necessary. I can spare to invest Rs 50,000 every month through SIPs and I am ready to take maximum risk (aggressive). Please advice which to exit and which to start afresh. Please let me know which are the best schemes to invest the rest Rs 15,000 in SIP every month. I am building this corpus for a real estate purchase after few years.

- Dr Jayakumar Ganesan, Chennai, on email

A. Dr. Ganesan, Your choice of funds is quite reasonable. Since you say your disposition is aggressive, it can remain an all equity portfolio. But I guess you are willing to let this portfolio work for at least three to five years before you expect good gains. I have highlighted three of the funds which you could overlook for now, and redistribute to increase your exposure to mid-cap funds, and other equity funds such as ICICI Prudential Focused Equity Fund. You may also increase your exposure to HDFC Equity Fund and BSL Frontline Equity. Focused Equity Fund has a concentrated portfolio of about 20 stocks only and has shown good performance in the recent past. It should be noted that it does not have a long track record as it is a new fund – about a year old. The Reliance RSF-Equity has been among my choices largely because of its small corpus and could continue to turn in good performance. Any increases you would want to make to your SIP can be made in the same proportion.