Hi Hardik, Good day. This is Rajesh N
I am planning to start SIP's (55K per month) in the following Mutual funds for a horizon of 5-7 years to create 1 corpus. Could you please review and suggest if they look fine or need any changes/alternate funds. I am fine to take higher risks. Thanks a lot. Have a Good Day.
Canara Robeco Small Cap 4000
Nippon India Small Cap 4000
Quant Small Cap 4000
HDFC Small Cap 4000
HDFC Flexi Cap 5000
Quant Flexi Cap 5000
Parag Parikh Flexi Cap 5000
HDFC Balanced Advantage Fund 6000
ICICI Prudential Balanced Advantage Fund 6000
Motilal Oswal Midcap fund 6000
HDFC Retirements Savings Fund 6000
Ans: Hello Rajesh, it's great to hear about your plan to start investing in mutual funds through SIPs. I would say that your choice of mutual funds looks diversified and suitable for your investment horizon of 5-7 years.
Since you mentioned that you are willing to take higher risks, your choice of small-cap funds such as Canara Robeco Small Cap, Nippon India Small Cap, Quant Small Cap, and mid-cap fund like Motilal Oswal Midcap fund, is appropriate as they have the potential to generate higher returns in the long run.
In addition, you have also selected some flexi-cap funds such as HDFC Flexi Cap, Quant Flexi Cap, and Parag Parikh Flexi Cap, which can help you to diversify your portfolio and provide flexibility to invest across market capitalizations.
Moreover, your choice of balanced advantage funds such as HDFC Balanced Advantage Fund and ICICI Prudential Balanced Advantage Fund, which invest in a combination of equity and debt, can help to manage market volatility and generate stable returns.
Lastly, your choice of HDFC Retirement Savings Fund is a good option for long-term retirement planning.
Overall, I believe that your choice of mutual funds is well-diversified, and suitable for your investment horizon and risk appetite. However, it's always important to review your portfolio periodically and make necessary changes based on market conditions and your financial goals.