Should You Invest in International Equity Mutual Funds?

—Name withheld on request

To diversify your overall mutual fund portfolio, international equity funds may have an allocation of up to 10%. This will not only provide you with geographical diversification but will also provide you with opportunities to invest in areas that are not available in India. There are many international funds available. However, you can choose Franklin India Feeder-US Opportunities Fund, ICICI Pru US Bluechip Equity Fund or Motilal Oswal Nasdaq 100 FoF.

i want to invest ₹15 lakh (one time) for the marriage of my 12 year old daughter. How should I invest, I have no idea about the investment plan?

-Maheshi

With your goal in mind, we are assuming that your risk profile will be medium – long term for at least the next 10 -12 years. You can build a comprehensive mutual fund portfolio that includes 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 Aditya Birla Sun Life Balanced Advantage Fund, ICICI Prudential Asset Allocator FOF and In the hybrid category, DSP Dynamic Asset Allocation Fund can be considered. It is worth mentioning here that equity investment should be done by opting for 12 months Systematic Transfer Plan (STP) route whereas hybrid investment can be done in lumpsum. This way your portfolio will be diversified across asset classes, categories, schemes and asset management companies. It is also advised to review your portfolio at least once in a year.

Sanjeev Bajaj, Joint Chairman and Managing Director, Bajaj Capital. Questions and thoughts at mintmoney@livemint.com