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Is this mutual fund portfolio suitable for an aggressive investor?

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|
Nov 05, 2019, 05.15 PM IST
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I am planning to start a monthly SIP of Rs 20,000 in mutual funds for 10-15 years. I am an aggressive investor. My goal is to create Rs 1 crore in 10+ years.

I have created a portfolio. Please check and confirm whether I can go ahead and invest.
ICICI Prudential Bluechip Fund: Rs 4,000
Axis Bluechip Fund: Rs 4,000
Motilal Oswal Multicap 35 Fund: Rs 5,000
HDFC Mid-Cap Opportunities Fund: Rs 4,000
HDFC Hybrid Equity Fund/SBI Small Cap Fund/ Kotak Standard Multicap Fund (which is better): Rs 3,000
- Sujith

You state your risk profile as aggressive. However, your chosen mutual portfolio is not line with your risk profile. You have chosen two large cap schemes that are recommended to conservative equity investors. Even hybrid schemes are suitable for conservative equity investors. A multi cap mutual fund is ideal for moderate investors. Only the mid cap and small cap schemes are in line with your risk profile.

Here are some pointers for you. One, reassess your risk profile to make sure that it is indeed aggressive. Many new investors love to believe that they have a very high risk profile. However, they realise the real meaning of risk only when the market gets into a rough parch and their investments lose value heavily. Take an online quiz if need be. Make sure that your schemes are in line with your risk profile. For example, if you are a conservative investor, you should invest mostly in large cap mutual funds. If you have an aggressive risk profile, you should invest mostly in mid cap and small cap mutual funds.

If you do not understand the basics of investing in mutual funds, it is always better to seek the help of a seasoned mutual fund advisor.
(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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