personal finance

Should I add more largecap or multicap schemes to my mutual fund portfolio?


I am 29 years old, and I wish to invest in equity mutual funds. I have so far invested only in liquid funds. I have selected some funds to invest Rs 2,000 in each of them. I am looking for good returns in the next 10 years:

L&T Emerging Businesses Fund – Direct Plan (G)

Reliance Small Cap Fund – Direct Plan (G)

L&T Midcap Fund – Direct Plan (G)

Motilal Oswal Multicap 35 Fund – Direct Plan (G)

Mirae Asset Emerging Bluechip Fund – Direct Plan (G)

Kindly suggest if you would want me to include more largecap funds or multicap into this.

–Raja Krishna

We typically ask investors to choose their mutual fund schemes based on their goals, investment horizon and risk profile. Since you have a long-term goal of 10 years, you can invest in equity schemes. However, it is equally important to choose equity mutual fund schemes that are in line with your risk profile. For example, you should invest mostly in largecap schemes if you are a conservative equity investor. If you have a moderate risk appetite, you should invest mostly in multicap schemes. Aggressive investors should opt for midcap and smllcap schemes.

You have chosen a two smallcap schemes, a midcap scheme, multicap scheme, and large and midcap scheme. You should re-look at these schemes with your risk appetite it in mind, and choose accordingly.

Do not add too many schemes to your portfolio. A regular person does not need more than four to five schemes in the portfolio. It would be difficult to keep track of your schemes if you add too many schemes.

If you are looking for a tailor made mutual fund portfolio, you may look at our recommended equity mutual fund SIP portfolios.
Best Mutual Funds to Invest in 2018. Choose a portfolio that is in line with your risk profile and SIP amount.





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