Are we investing in the right mutual funds?
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Kotak Standard Multicap Fund: Rs 2,000
I am also investing Rs 1,000 in each of these schemes:
Reliance Small Cap Fund
Tata Equity PE Fund
L&T Midcap Fund
Mirae Asset Large Cap Fund
Mirae Asset Emerging Bluechip Fund
Axis Multicap Fund
My goal is wealth creation, and I want to invest for 10 years. I am a moderate risk-taker.
My wife is also investing in ICICI Prudential Bluechip Fund (Rs 2,000) and HDFC Small Cap Fund (Rs 1,000).
How is our portfolio? How the funds are?
You are investing Rs 8,000 in seven equity mutual fund schemes. You are investing in too many schemes. You don't need more than two schemes in your mutual fund portfolio since you are currently investing a modest amount.
Also, your mutual fund portfolio is not in line with your stated risk profile. If you are a moderate risk taker, you are supposed to invest mostly in multi cap schemes. You may also add a large cap scheme if you want to diversify and reduce the overall risk in your fund portfolio.
You certainly cannot invest in mid cap and small cap schemes as they are meant for aggressive investors who can afford to take more risk and have the ability to withstand volatility. Even large & mid cap schemes are riskier as they are mandated to invest around 33 per cent of the corpus in mid cap stocks.
Remember, top-ranked funds do not make a good mutual fund portfolio. Your mutual fund portfolio should be in line with your goals, investment horizon, and risk profile. Otherwise, you would try to tinker with it and lose an opportunity to create desired wealth.
If you are new to mutual funds, you must consult a mutual fund advisor. An advisor would offer you personalised advice and can guide you better in your initial years of investment journey. You should try to gain enough knowledge and experience about investing in mutual funds before starting to invest on your own.