Hi, I am LY, currently i have invested in DSP tax saver fund- regular plan growth-50k, ICICI prudential flexi cap fund growth-5k monthly, Bandhan flexicap fund growth regular plan-2500 montly,Mahindra manulife large and midcap fund regular growth-3k monthly,FNGP- uti floater fund regular plan-1500 monthly,MCGP-UTI mid cap fund regular plan 3500 montly.
My current value of investments is 6.50 lac & i want to start more 10k monthly.
Please advise whether above investments are ok & to start with 10k monthly in which MF i should start?
Ans: I have no idea about your age, future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down. Hence, it is not possible for me to review your complete portfolio and suggest you to invest the additional SIP amount.
However please note that mutual funds work the best when you’re in it for a long term. Typically, investors change their investing horizon as per the market conditions – if markets remain good, they’re long-term players, if markets turn down, they start exiting in panic and become short term players. Please remember that markets will always give great returns only if you ‘spend time in the markets, rather than try timing the market’.
So, I’m just giving you a high-equity portfolio which is a long term portfolio but needs to be reviewed and maybe rebalanced every year. The general portfolio construction that I would suggest is:-
1. Large Cap / Index Fund – 40% of SIP amount
2. Flexicap Fund – 20%
3. Large & Midcap Fund – 20%
4. Asset Allocator Fund – 20%
In the above portfolio, the risk has been avoided. If you want more risk, then you may add mid and/or small cap funds to the extent of your risk by reducing the Large cap Fund and maybe replacing the Asset Allocator fund.
