personal finance

Have I chosen the right mutual fund schemes?


Can you just comment on the funds that I am investing? I have a horizon of 20 years and I am a moderate risk-taker. I am currently investing in these funds:

BNP Paribas Substantial Equity Fund
BNP Paribas Focused 25 Equity Fund
DSP Small Cap Fund
HDFC Balanced Advantage Fund
ICICI Prudential Equity and Debt Fund
Reliance Large Cap Fund
Reliance Multi Cap Fund
SBI Bluechip Fund
SBI Magnum Taxgain Fund
SBI Magnum Midcap Fund

I have been investing Rs 1,000 pm in all these funds for the last two years.
–Sanju Philip

You are currently investing in 10 mutual fund schemes. We believe that a typical retail investor would find it difficult to keep track of the performance of the investments if s/he stacks up too many schemes. That is why we typically ask investors to keep the total number of schemes to four or five. If you find it difficult to keep track of your investments, you may try to prune your investments.

If you have a moderate risk appetite, you should invest mostly in multicap schemes. You may also invest a part of your corpus in largecap schemes if you want to diversify and reduce the overall risk on your portfolio.

You are currently investing in a multicap and two largecap schemes that are in line with your risk profile. Two aggressive hybrid schemes and balanced advantage funds are meant for first-time investors and very conservative investors. Midcap and smallcap schemes are meant for aggressive investors with a higher risk appetite.





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