Cole says investors should not confuse the strength of a company with the value of a share as shares in good companies are not always worth buying as it all depends on price."If the three important things about retailing are location, location and location, the three important things about equity investment are valuation, valuation and valuation," he says.

I am 26 years old. I have been investing in following mutual funds via SIP since August. Should I change some schemes or add some more schemes? I have already made a contingency fund. I can invest upto 30K monthly in mutual funds
Kotak Emerging Equity Fund: Rs 5,000
UTI Nifty 50 Index Fund: Rs 5,000
Parag Parikh Flexi Cap Fund: Rs 5,000
Axis Midcap Fund: Rs 3,000
--Abhi Bhat

You are investing in two mid cap schemes, a large cap scheme, and a flexi cap scheme. You have chosen good individual performers. We ask new investors to start with schemes with relatively low risk. For example, those who want to grow their investments without too much risk and volatility can invest in large cap schemes. If one can take moderate risk, s\he can invest in flexi cap schemes. We do not recommend mid cap schemes to new investors. We believe that new investors tend to lose their nerve during turbulent times in the market. We ask new investors to gain some experience and knowledge before investing in risky options.

(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.)

Should I add some more mutual funds to my portfolio?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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