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Ideal mutual fund portfolio for a moderate risk-taker

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

ET Online|
Sep 10, 2019, 03.53 PM IST
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I have an investment horizon of five years, and a moderate to high risk appetite. Can you evaluate my mutual fund portfolio:
HDFC Mid-Cap Opportunities Fund: Rs 10,000 per month
Reliance Small Cap Fund: Rs 10,000 per month
SBI Small Cap Fund: Rs 20,000 per month
Motilal Oswal Multicap 35 Fund: Rs 10,000 per month
I have another Rs 30,000 per month in bluechip fund.
-Sahil Khanna


An equity mutual fund investor with a moderate to high risk profile may consider investing mostly in multi cap mutual fund schemes and also in mid cap mutual funds. The proportion of mid cap investments should be based on how much extra risk the investor wants to take.

You are currently investing in a mid cap scheme, multi cap scheme, large cap scheme and two small cap schemes. Small cap schemes are not in line with your risk profile. Since you are investing a sizeable part of your corpus in small caps, you should reassess your risk profile and decide whether you want to continue investing in them.

Also, you should have a longer investment horizon if you want to invest in equity mutual funds. We recommend equity mutual funds only if the investor has a horizon of at least five to seven years. Mid cap investors should have a longer investment horizon of seven to 10 years.
(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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