ETtechI am 31 years old and I have been investing Rs 28,000 per month through SIP route in the following schemes:
Bluechip Fund: Rs 5,000
ICICI Prudential Multi-Asset Fund: Rs 5,000
Mirae Asset Large Cap Fund: Rs 3,000
PGIM India Midcap Opportunities Fund: Rs 5,000
Axis Small Cap Fund: Rs 5,000
Nippon Multi Cap Fund: Rs 5,000
I am planning to invest Rs 10,000 more in mutual funds through the SIP route. Which schemes/fund types would you suggest considering the current portfolio? Would you advise sticking with mutual funds or exploring alternative instruments?
My risk profile is moderate to slightly aggressive. Time Horizon: Would like to build my portfolio with schemes that would help me give returns in medium to long term.
-- Tushar Agarwal
We always ask our readers to state their investment objectives clearly to avoid confusion. For example, you are slightly aggressive. Another person would interpret ‘slightly’ differently. Time horizon is also vague. Always, adopt a goal based approach. Once you say you want to invest a goal in five years or 10 years, there is no room for confusion.
You are investing in two large cap funds, a multi asset fund, mid cap fund, small cap fund, multi cap fund. Large cap funds are recommended to conservative equity investors. Multi cap schemes, mid cap schemes, and small cap schemes are risky and they are meant for aggressive investors. That means more than half of your investments are in high-risk mutual fund schemes. As you can see, this doesn’t fit into a slightly high risk. Ensure you are okay with the extra risk.
Take an online quiz to assess your risk profile. Once you know the risk profile, you can choose mutual fund schemes based on your goals, horizons, and risk profile. If you are investing for long-term goals without too much risk, you should invest in large cap schemes. If you are ready to invest in slightly more risky schemes (that means, you are willing to take moderate risk), you may choose flexi cap schemes.
If you don’t know the basics, seek the help of a mutual fund advisor. You will lose a lot of money if you learn by trial and error method.
Bluechip Fund: Rs 5,000
ICICI Prudential Multi-Asset Fund: Rs 5,000
Mirae Asset Large Cap Fund: Rs 3,000
PGIM India Midcap Opportunities Fund: Rs 5,000
Axis Small Cap Fund: Rs 5,000
Nippon Multi Cap Fund: Rs 5,000
I am planning to invest Rs 10,000 more in mutual funds through the SIP route. Which schemes/fund types would you suggest considering the current portfolio? Would you advise sticking with mutual funds or exploring alternative instruments?
My risk profile is moderate to slightly aggressive. Time Horizon: Would like to build my portfolio with schemes that would help me give returns in medium to long term.
-- Tushar Agarwal
We always ask our readers to state their investment objectives clearly to avoid confusion. For example, you are slightly aggressive. Another person would interpret ‘slightly’ differently. Time horizon is also vague. Always, adopt a goal based approach. Once you say you want to invest a goal in five years or 10 years, there is no room for confusion.
You are investing in two large cap funds, a multi asset fund, mid cap fund, small cap fund, multi cap fund. Large cap funds are recommended to conservative equity investors. Multi cap schemes, mid cap schemes, and small cap schemes are risky and they are meant for aggressive investors. That means more than half of your investments are in high-risk mutual fund schemes. As you can see, this doesn’t fit into a slightly high risk. Ensure you are okay with the extra risk.
Take an online quiz to assess your risk profile. Once you know the risk profile, you can choose mutual fund schemes based on your goals, horizons, and risk profile. If you are investing for long-term goals without too much risk, you should invest in large cap schemes. If you are ready to invest in slightly more risky schemes (that means, you are willing to take moderate risk), you may choose flexi cap schemes.
If you don’t know the basics, seek the help of a mutual fund advisor. You will lose a lot of money if you learn by trial and error method.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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