Enrich your portfolio with insurance and mutual fund

When an investor is looking at a time horizon of about 20 years, he must have a good mix of term insurance plans and mutual fund schemes, suggests Pankaj Mathpal of Optima Money Managers.

Pankaj Mathpal, Managing Director ,Optima Money Managers

Expertise : Fixed Income ,Mutual Funds ,Tax

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Markets And Macros at 11:00 am

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When an investor is looking at a time horizon of about 20 years, he must have a good mix of term insurance plans and mutual fund schemes, suggests Pankaj Mathpal of Optima Money Managers. A good combination of mid cap, large cap and gold funds can enrich one's portfolio, feels Mathpal.

Here is the edited transcript of the interview on CNBC-TV18.

Q: Investor can invest Rs 30,000 per month for 20 years. Since you have the profile of the investor with you what would you advice him? Is he investing correctly?

A: Firstly, we will talk about life insurance. He has Rs 7.5 lakh in different policies but, he is under-insured basically. He should increase his life cover through a term insurance plan.

Second thing is mutual funds. He has too many schemes in his portfolio so he can continue with HDFC Mid-Cap Opportunities Fund , HDFC Top 200 Fund and ICICI Prudential Discovery Fund . He should discontinue other schemes.

If he wants to remain invested for sometime that's okay, but at least for SIP he should discontinue. He should continue only for 4 to 5 funds. The funds which he has in midcap category like HDFC Mid-Cap Opportunities and ICICI Discovery Fund are both good funds. But, he can include one large cap fund like ICICI Prudential Focused Bluechip Fund in his portfolio. Also one gold fund should be included in his portfolio.

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