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Can I continue with these mutual fund schemes?

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Last Updated: Feb 14, 2020, 04.10 PM IST
I have been investing in the schemes listed below for the last two years.

Kotak Standard Multicap Fund: Rs 4,000
Mirae Asset Large Cap Fund: Rs 3,000
Nippon India Small Cap Fund: Rs 1,000
HDFC Hybrid Equity Fund: Rs 2,500

Should I continue with these schemes? I have a horizon of 20 years and I am expecting 15% returns from my portfolio. I am a medium risk-taker.
-Varun Gupta

A long-term investor with a moderate risk profile is typically asked to invest mostly in multi cap mutual fund schemes. If he wants to reduce the overall risk in the portfolio, he can also invest in large cap mutual funds.

You are currently investing in a multi cap scheme, large cap scheme, small cap scheme, and aggressive hybrid scheme. You need to relook at your investments in the small cap and aggressive hybrid categories. A small cap scheme is not suited to your risk profile. These schemes are extremely risky and they can also be volatile. That is why they are recommended to aggressive investors.

Similarly, aggressive hybrid schemes are typically recommended to very cautious equity investors and newcomers to the stock market. Since you have a moderate risk profile and long-term investment horizon, you may go for a multi cap scheme or large cap scheme.

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