Hi, I am 40 years old and want to invest 5 lakhs in equity mutual funds in the next 12 months. The purpose is wealth creation. The investment period will be typically 18-20 years. Pls suggest 5-6 equity MFs for the same. Also pls inform typically at what intervals should I consider reshuffling these suggested funds. Thanks.

Ans:

1. Axis Focused-25 fund growth (Investment About 52 %): Reduce the exposure and include Uti Equity Fund-growth Plan-growth and Parag Parikh Long Term Equity Fund- Regular Plan Growth

2. Axis Long Term Equity Fund Growth (About 35 %): Reduce the exposure and add Canara Robeco Equity Tax Saver Fund Regular Growth

3. Axis Blue Chip Fund (About 4 %): Please continue

4. Axis Equity Saver Fund (About 7 %): Kindly consider Axis Esg Equity Fund Regular Growth instead

5. ICICI Prudential Value Fund Series 20 (About 2 %): Please continue

Ans: Considering your long-term investment horizon of 25-30 years and your risk appetite, your selection of mutual funds seems suitable. However, it's essential to ensure proper diversification across different asset classes and market segments to mitigate risk. Since you are a farmer and have a monthly savings capacity of Rs. 15,000, you can distribute your investments across these funds based on your risk tolerance and financial goals. Additionally, consider consulting with a financial advisor to fine-tune your investment strategy and ensure alignment with your objectives. Regularly review your portfolio's performance and make adjustments as needed to stay on track towards your goals.