Should I add more large cap or multi cap schemes to my portfolio?
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Axis Bluechip Fund: Rs 2,000
Parag Parikh Long Term Equity Fund: Rs 2,000
L&T Midcap Fund: Rs 1,000
I have a moderate risk profile. So, I have chosen one mid cap scheme. My investment period is five to 10 years. And my goal is to arrange fund for my marriage. I am not focusing on returns of mutual funds because I want to play a bit safer with moderate returns. So, as per my plan, is my portfolio good or should I add more large- or multi-cap funds?
And do I need to add any balanced fund? If yes, please suggest me a good balanced fund.
Mutual fund advisors typically ask moderate investors to invest mostly in multi cap schemes. If the investor wants to play safe, advisor ask the investor to take some exposure to large cap or aggressive hybrid schemes to diversify and bring down the overall risk in the portfolio.
You are currently investing in a large cap, multi cap, and mid cap scheme. As you can see, the multi cap and large cap schemes are suitable for your risk profile. However, you should figure out how you should invest in large cap scheme keeping in mind your risk appetite and return expectations.
Mid cap schemes are not meant for moderate equity investors. They are meant for aggressive investors with a high risk appetite and ability to tolerate volatility.
You are investing 20 per cent of your total investment in a mid cap scheme. Rs 1,000 may look small, but it is not a small amount when you are investing only Rs 5,000.
If you are not very clear about the basics of mutual funds and investing, you should seek the help of a mutual fund advisor. Gain some experience and confidence before investing on your own.