How do I ensure better returns from my investment portfolio?

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₹25,000. I have ₹30 lakh in a bank fixed deposit, ₹2.5 lakh in a savings account, $65,000 in USD checking account, shares and sovereign gold bond worth ₹10 lakh, mutual funds of ₹21.57 lakh (systematic investment plan of ₹5,000 in SBI Consumption Opportunity Fund, ₹10,000 in SBI Small Cap, ₹2,000 in SBI Magnum Global Fund, ₹1,000 in focused equity fund every month), besides ₹16 lakh in PPF (public provident fund). I also own two flats, one of which is valued at around ₹50 lakh (possession pending), while the other yields a monthly rent of ₹15,000 and is valued at approximately ₹65 lakh.

I have a housing loan of ₹18 lakh and car loan outstanding of ₹10 lakh. I have term plan cover of ₹1 crore. How should I invest my funds for better returns.

-Name withheld on request Parking more than required in fixed deposit and USD could be counterproductive unless you have any immediate plans for it. You can diversify a part of both these avenues into equity mutual funds to generate better returns after keeping aside some amount as contingency fund in fixed deposit. At present, you are just investing ₹18,000 per month and there is a huge potential to increase these SIPs.

You can start. The mutual funds you are investing in can also be across different asset management companies as at present all your SIPs are with just one company. This will help you reduce the risk of being over-dependent on the performance of one fund house or fund management team.