-Yuvaraj Vaaji
First, you should choose your mutual funds based on your goal, horizon, and risk profile. Hope you have a very long investment horizon and aggressive risk profile to invest in small cap schemes.
Two, what are you planning to do is called recycling of investments. Many individuals take the money out from existing investments to take care of their tax-saving investment requirements. It is fine if you are short on money and can’t raise funds for tax saving investments. However, if you are doing it just for the sake of it, it is a bad strategy. When you do not make fresh investments, it will have an adverse impact on your long-term wealth creation. When you are essentially recycling your investments without committing fresh money, you lose out on many counts, especially your financial discipline.
Ensue that you save and invest at least 30-40% of your post-tax salary to retire rich.