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Are my mutual funds suited for my conservative risk profile?

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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Last Updated: Feb 18, 2020, 01.50 PM IST
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I have started investing in the following mutual funds this year:
Parag Parikh Long Term Equity Fund (G): Rs 5,000
Mirae Asset Mid Cap Fund (G): Rs 5,000
SBI Small Cap Fund (G): Rs 5,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000

I am 37 years old, and I have a long term investment horizon. I want to build a retirement corpus. I am a conservative investor with some flair for risk. Kindly tell if my portfolio is alright.
-Bipul Brahma


We typically ask conservative long-term equity investors to invest mostly in large cap mutual funds or aggressive hybrid schemes. We believe these schemes are ideal for conservative investors to grow money over a long period without exposing their investments to a lot of volatility - something that they look in their investments.

You are currently investing in a multi cap mutual fund scheme, mid cap mutual fund scheme, small cap scheme, and large & mid cap scheme. None of these schemes are meant for conservative investors. Multi cap mutual fund schemes are recommended to moderate risk-takers, while mid cap schemes and small cap schemes are recommended only to aggressive investors with a large appetite for risk and volatility.

You should reassess your risk profile and try to sharply define your risk profile. Next, ensure that your investments are in line with your risk profile. Take the help of a mutual fund advisor if you need any help. It is extremely important to invest in schemes that matches your risk profile. if there is a mismatch in this, you might feel disatisfied with your investments and chances of your stopping or selling your investments are very high.

(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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