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What is the ideal combination of funds for an experienced investor?

Dhirendra Kumar tells the ideal combination of funds for an experienced investor with a time horizon of 15-20 years


Feb 25, 2019

 

I've been investing in mutual funds from past one to one and a half years. I have short listed some funds for my portfolio. These are multicap funds of SBI and Mirae Asset India, Aditya Birla Sun Life Tax Relief 96 Fund and ICICI Balanced Advantage Fund. I want to invest for a good 15-20 years. Kindly suggest the suitability of these funds basis their performance.
- Prashantu

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On the basis of your time horizon, apart from ICICI Balanced Advantage, all the other three funds make for a suitable option. ICICI Balanced Advantage fund is also a good fund but more suitable for first time investors as it invests in both equity and debt. Since you are investing for a very long term, you should definitely go for all equity funds as you can easily withstand the cyclicity of the market. Invest via SIPs in these funds and make sure to review your portfolio once in two to three years.

However, if you feel you can't stand the market cycle fluctuations then instead of investing in two multicap funds, invest in two balanced (aggressive hybrid) funds to get some stability.

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