Hello Sir,
I am 38 years working professional. Below are my Mutual Funds list.
1. Axis Bluechip fund Direct Plan growth - 2000 / month
2. PGM mid cap opportunity Direct Plan growth - 2000 / month
3. SBI small cap fund Regular growth - 1000 / month
4. Axis nifty 50 Direct Plan growth - 2000 / month
5. ICICI next nifty 50 Direct Plan growth - 2000 / month
6. ICICI nasdaq index direct plan growth - 2000 / month
7. ICICI technology fund Regular plan growth - 1000 / month
Kindly give your input on this. Shall I continue with this for long term or not?
Ans: According to the data you have given, it appears that you have a Rs. 12,000/- monthly systematic investment plan (SIP) distributed across seven different mutual funds. Generally speaking, if your entire investing amount is Rs. 10 lakhs, you should invest in 6-7 mutual funds. Over-diversification can result from having too many mutual funds in your portfolio.
Regarding the recommendation on the mutual funds in your portfolio, all of them are considered to be fundamentally strong with a good track record. Investments in pure equity funds are recommended for the long term, ideally for a period of 5-7 years.
On the other hand, certain categories such as Small Cap, Mid Cap, and Sectoral funds are recommended only if you have an investment horizon of more than 7 years.
It's worth noting that two of the funds in your portfolio, namely Axis Nifty 50 Direct Plan Growth and ICICI Nasdaq Index Direct Plan Growth, are recently launched funds. As a result, they do not have sufficient track record to accurately assess their risk and reward potential.
We hope that you have made your investments based on your short-term and long-term goals, taking into consideration your risk profile.
Disclaimer:
• I have just 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, please note that I am answering your question in absolute isolation to other parameters which should definitely be considered when answering a question of this type.
• I recommend you to also consult a good financial advisor who would look at your complete profile in totality before you act on this advice given by me.
