allocate money

I am 28 years old. I have been investing in mutual funds for the last three years. I need to know whether the selected mutual fund schemes are fine or if any modifications are required.
I am investing in the following schemes:
SBI Bluechip Fund: Rs 3,000
ICICI Prudential Value Discovery Fund: Rs 3,000
ICICI Prudential Balanced Fund: Rs 4,000
I am a low risk investor and my investment horizon is upto 10 years. I do not have defined goals. I also have some investments in liquid funds.
—-Moksha Bhate

Subir Jha, Founder, Buckspeak, responds:

One of the things that you should do is to define your financial goals in life – short/medium/long term. Example of a long term goal is retirement. Once you decide on a financial goal and the year by which you want to achieve it , you can use one of the online tools to arrive at the inflation-adjusted value. This will help you to choose the right funds.

You are still very young and can have a lot of time to achieve your goal. Evaluate if you you can afford to take a little extra risk.

If you are okay with the extra risk over a long period, I would recommend a mid and small cap fund to you. While ICICI Value Discovery has underperformed in the last three years, it used to be a great performer earlier. You can continue with it for a few more years. If the performance does not improve, you can move to another fund from the same category. SBI Bluechip Fund and ICICI Balanced Fund (now known as ICICI Equity & Debt Fund) have done reasonably well in their category and you can continue to invest in them. Too much of chopping and changing does not help over the long term .