Hybrid and index funds can stabilize a portfolio
PremiumMove hybrid fund to a debt fund such as Kotak Savings Fund and move large-cap fund to an index fund
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I have a query regarding my mutual fund returns. I have been investing ₹30,000 every month since August. How much returns can I expect in the next 5-10 years? My investments are in Parag Parikh Flexi Cap, Mirae Asset Tax Saver, Canara Robeco Bluechip, SBI Focused Equity Growth and BOB Dynamic Growth funds.
—Name withheld on request
There are two ways to look at your question—one quantitative and the other qualitative. Quantitatively, you have an all equity portfolio. Assuming that the market returns are 12% on an average, your ₹30,000 SIP will come to around ₹70 lakh. In 5 years, you would have invested ₹18 lakh and would stand to accumulate ₹25 lakh. You have an aggressive portfolio. My recommendation to you would be to move your hybrid fund to a debt fund such as Kotak Savings Fund and to move your large-cap fund to an index fund. These moves will help you stabilize your portfolio a bit and will help lower the costs incurred as well.
Srikanth Meenakshi is the founder of Primeinvestor.in
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