sir, Im 42 years, started investing in MF one year back.Monthly SIP is Rs 20,000.00 into these :
Axis Small Cap Fund - Gr 2500
Edelweiss Mid Cap Fund - Regular Gr 2500
Invesco India Smallcap Fund - Gr 2500
SBI Multi Cap Fund - Gr 2500
Tata Multicap Fund - Gr 5000
Tata Small Cap Fund - Gr 5000
Kindly advice whether these funds are ok and give good value at 60 age.
Ans: Hello Acharya,
It's great to see that you've started investing in mutual funds through SIPs at the age of 42. A well-diversified portfolio can be a good way to create wealth for the long term, which could help you meet your financial goals by the time you're 60.
Based on the funds you've mentioned, it seems like you have a mix of small-cap, mid-cap, and multi-cap funds. While I'm not in a position to provide specific advice on individual funds, I can certainly give you some general guidance to help you evaluate your portfolio.
Diversification: Your portfolio should be well-diversified across sectors, market capitalizations, and asset classes. This can help reduce risk and improve long-term returns. From your list, it seems you have exposure to small-cap, mid-cap, and multi-cap funds. Consider reviewing the sector and stock holdings within these funds to ensure adequate diversification.
Risk tolerance: It's important to assess your risk tolerance as you invest. Small-cap and mid-cap funds generally carry higher risk compared to large-cap and multi-cap funds. As you approach your retirement age, you may want to revisit your risk tolerance and consider adjusting your portfolio accordingly.
Fund performance: Regularly review the performance of the funds in your portfolio. Compare the funds' performance to their respective benchmarks and peer groups. Consistent underperformance over a considerable period could be a sign to reevaluate the fund.
Investment horizon: Since you're looking at a time horizon of around 18 years, you may have enough time to ride out market fluctuations. Equity investments tend to perform better over the long term, so having a longer investment horizon can potentially work in your favor.
Regular rebalancing: Periodically review and rebalance your portfolio to ensure it stays aligned with your financial goals and risk tolerance. This may involve shifting your allocation between different asset classes or funds as you approach retirement.
In conclusion, it's essential to have a well-diversified and risk-adjusted portfolio that aligns with your investment goals and risk tolerance. As your financial advisor, I would recommend that you consult with a certified financial planner who can provide personalized advice based on your unique financial situation and goals.
Wishing you success in your investment journey!
