Should I alter my mutual fund portfolio?
ET Online|
Updated: Mar 06, 2018, 03.40 PM IST
I am 30 years old and I have a long-term investment horizon. I am a moderate risk taker. I have been investing in mutual funds since
Aug 17
in the following schemes :
ABSL Tax Relief '96: Rs 1,100 (SIP)
L&T Emerging Business Fund: Rs 1,200 (SIP)
HDFC Balanced Fund: Rs 2,100 (SIP)
SBI Bluechip Fund (surplus money in a lumpsum)
ABSL Short Term Fund: Rs 30,000 (lumpsum)
Is my portfolio right or should I change?
--Sanchit Gupta
You are investing through SIPs in a tax-saving fund (ELSS), a smallcap fund, and a balanced fund. You have also invested a lumpsum in a largecap scheme. Your risk profile and investments do not match.
An investor with a moderate risk profile typically should invest in multicap schemes. If she wants to diversify or add stability to the portfolio, she may take a small exposure to a largecap scheme.
However, a smallcap scheme is definitely not meant for a moderate risk-taker. They are suitable only for investors with a high risk-taking ability.
Are you new to mutual funds and investing? If so, you should consult a mutual fund advisor. An advisor would be able to offer your personalised advice. Picking up schemes without a proper investment plan might hurt your future plans.
Here are some suggestions:
One, if you are not looking to save taxes under Section 80C, you may discontinue investing in ABSL ELSS. ELSS schemes are meant for saving taxes. Otherwise, investing in an open-ended multicap scheme is a better strategy.
Two, you should stop further investments in L&T fund since it is not compatible with your risk profile. if you do not want to pay short-term capital gains tax, wait for your SIPs to complete a year before selling them.
Three, balanced schemes are meant for conservative equity investors. You may stop your investments in HDFC Balanced Fund, and start investing in a multicap scheme.
Here are our recommended multicap schemes: Best multicap schemes to invest in 2018
Four, you have not mentioned how much money you have invested in SBI Bluechip Fund. If it is a small amount, you may hold on to your your investments. Largecap funds are less volatile, but they offer moderate returns. If you are looking to park the money for two or three years, you may hold on to the short-term scheme. If you can invest the money for a period of five to seven years, you can invest in a multicap scheme of your choice.
ABSL Tax Relief '96: Rs 1,100 (SIP)
L&T Emerging Business Fund: Rs 1,200 (SIP)
HDFC Balanced Fund: Rs 2,100 (SIP)
SBI Bluechip Fund (surplus money in a lumpsum)
ABSL Short Term Fund: Rs 30,000 (lumpsum)
Is my portfolio right or should I change?
--Sanchit Gupta
You are investing through SIPs in a tax-saving fund (ELSS), a smallcap fund, and a balanced fund. You have also invested a lumpsum in a largecap scheme. Your risk profile and investments do not match.
An investor with a moderate risk profile typically should invest in multicap schemes. If she wants to diversify or add stability to the portfolio, she may take a small exposure to a largecap scheme.
However, a smallcap scheme is definitely not meant for a moderate risk-taker. They are suitable only for investors with a high risk-taking ability.
Are you new to mutual funds and investing? If so, you should consult a mutual fund advisor. An advisor would be able to offer your personalised advice. Picking up schemes without a proper investment plan might hurt your future plans.
Here are some suggestions:
One, if you are not looking to save taxes under Section 80C, you may discontinue investing in ABSL ELSS. ELSS schemes are meant for saving taxes. Otherwise, investing in an open-ended multicap scheme is a better strategy.
Two, you should stop further investments in L&T fund since it is not compatible with your risk profile. if you do not want to pay short-term capital gains tax, wait for your SIPs to complete a year before selling them.
Three, balanced schemes are meant for conservative equity investors. You may stop your investments in HDFC Balanced Fund, and start investing in a multicap scheme.
Here are our recommended multicap schemes: Best multicap schemes to invest in 2018
Four, you have not mentioned how much money you have invested in SBI Bluechip Fund. If it is a small amount, you may hold on to your your investments. Largecap funds are less volatile, but they offer moderate returns. If you are looking to park the money for two or three years, you may hold on to the short-term scheme. If you can invest the money for a period of five to seven years, you can invest in a multicap scheme of your choice.
