Mirae Asset Large Cap Fund: Rs 2,500
Axis Bluechip Fund: Rs 1,100
Kotak Emerging Equity Fund: Rs 2,200
Axis Small Cap Fund: Rs 3,200
Kotak Small Cap Fund: Rs 2,500
Parag Parikh Flexi Cap Fund: Rs 5,000
Mirae Asset Tax Saver Fund: Rs 2,000
Quant Tax Plan: Rs 1,500
Technology Fund: Rs 1,500
I am expecting 15% return. Am I investing in too many funds? Should I make any changes?
You are investing in two large cap schemes, two tax saving schemes, a mid cap scheme, small cap scheme, flexi cap scheme, and technology scheme. There is a disconnect between your stated risk profile and mutual fund portfolio. Take an online quiz to find out your risk profile. If you don’t understand the basics of mutual funds, you should get the help of a mutual fund advisor.
You are investing in too many schemes. You don’t need more than two or schemes to diversify and maximize your portfolio. Find out your risk profile and choose schemes that match your risk profile. Investing a small amount in too many schemes will not help you to diversify or maximize returns. Most often it results in overdiversification and dilutes overall returns from your portfolio.
Confused about your risk profile? Here is how you can easily choose mutual funds that match your risk appetite.
Mutual funds do not offer assured returns. The returns would depend on the performance of the stock market and your schemes. Based on long-term historical average returns, you may hope to get a return of around 12%. Remember, it is just an assumption. The real return may be higher or lower.