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Are these mutual funds suitable for my retirement?

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Last Updated: Feb 14, 2020, 12.28 PM IST
I am 32 years old. I have been investing in the following mutual fund schemes through SIPs for my retirement. Are these schemes suitable for retirement or should I make any changes? My risk profile is moderately high, and I have 28 years for retirement

Mirae Asset Large Cap Fund (Direct, Growth): Rs 5,000
Axis Bluechip Fund (Direct, Growth) Rs 6,000
Parag Parikh Long Term Equity Fund (Direct, Growth): Rs 6,000
Kotak Standard Multicap Fund (Direct, Growth): Rs 6,000
Mirae Asset Emerging Bluechip Fund (Direct, Growth): Rs 3,500
Axis Midcap Fund (Direct, Growth): Rs 3,500
-Arun Singh

You should try to define your risk appetite a bit more sharply. When you say moderate to high, it is not clear how much extra risk you want to take for the extra returns. This is important because a moderate investor is typically asked to invest mostly in multi cap schemes. If you want to take some extra returns, you may add a bit of mid cap schemes to your portfolio. But how much mid cap would depend entirely on your risk appetite.

You are currently investing two large cap mutual funds, two multi cap mutual funds, a large & mid cap scheme, and mid cap scheme. Clearly, your portfolio lacks focus.

As said earlier, the multi cap mutual funds are in line with your risk profile. You are taking exposure to mid cap segment through a large & mid cap scheme and a pure mid cap scheme. You should make sure that you are comfortable with this total exposure.

Large cap mutual funds are meant for conservative equity investors. It is not clear why you are taking such a large exposure to them, especially when you have stated that your risk profile is moderate to high. Large cap schemes may offer stability to your portfolio, but they may also drag the overall returns down.

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