Please give some clarity that all these funds are good ina single portfolio. Please suggest me sir 1. Quant Small cap 2.Quant acitive fund - Mid Cap 3.Quant Tax plan - Elss 4. Nippon growth fund - Milti Cap 5.parag fariq flexi cap 6.Navi nifty bank index fund.
Ans: Currently, the asset allocation of the portfolio is 100%. Any good portfolio should diversify to provide support during uncertainties. Portfolio is also overly allocated towards a particular AMC (Quant), which increases the concentration risk of the portfolio. Also avoid two or more funds of one category.
All the funds are well positioned. Nippon India growth fund seems better than Quant Mid Cap.
Apart from deduction benefits, ELSS is better investment option from return perspective and amogst its peers, Quant Tax Plan has delivered decent returns.
Navi Nifty Bank Index is a sectoral fund. A sectoral category fund majorly faces three drawbacks i) inconsistent returns, ii) limited exposure and iii) incomplete replication of index portfolio. Instead of this, Sensex and Nifty index are better option having exposure of overall market