Hi sir
I have invested in SIP in following and long term horizon and been investing in these funds from last 15yrs
Hdfc balance advantage
Hdfc small cap
Hdfc top 100
Hdfc mid cap opportunities
Hdfc multi cap
Hdfc flexi cap fund
Absl pure value fund
DSP mid cap
2000 each and direct growth
Please suggest any new fund to add
Ans: Based on your existing portfolio, which already covers a significant diversification across investment styles and market caps, adding more funds might not be necessary unless you have specific goals or want to address under-allocation in certain areas.
However, a suggestion on your existing portfolio - most of the funds in which you have invested belongs to one single AMC i.e. HDFC, bringing in the risk associated with one AMC while doing so as given below.
Risks of concentration in one AMC:
Limited diversification: Concentrating your investments in one AMC exposes you to the specific risks and performance of that company. If the AMC underperforms or faces challenges, it can significantly impact your entire portfolio.
Lack of exposure to different investment styles: Each AMC might have its own investment philosophy and style. Sticking to one limits your access to diverse styles and potentially higher returns from other AMCs.
Missing out on promising funds: Different AMCs manage different sets of funds with varying strengths. By limiting yourself to one, you might miss out on high-performing funds from other companies.
You can consider investing in different AMCs and getting exposure to different investment style.
