Dear sir, I am having MF portfolio around 12.5 lakhs invested through SIP and lumpsum both ways. MF holdings are:-
Mirae large & mid cap-3.2 lakh
Mirae mid cap-3.4 lakh
Parag parikh flexi-3.0 lakh
Parag parikh elss-75 k
Kotak emerging equity -1.0 lkh
Nippon small-65 k
Motilal midcap- 4k (just started)
Tat small cap 3k (SIP recently started)
I recently switched from axis mid cap to kotak Emerging. I am confused about mid cap funds which one should I keep whether motilal or kotak emerging. Kindly suggest Whether my portfolio is well diversified or any changes required. I want to exit one mid cap or keep all 3 in portfolio considering overlap.
Ans: Your portfolio is well diversified across various categories and designed for long-term horizon.
Currently, you have three mid-cap funds in your portfolio i.e. Mirae Asset Mid Cap Fund, Kotak Emerging Equity Fund, and Motilal Oswal Mid Cap Fund.
Motilal Oswal Mid Cap Fund is currently investing only in 30 stocks which makes it focused in nature. The market surge has helped the fund achieve strong returns over the last year, but these returns have not been steady and have not had a particularly strong track record. Thus, we advise you to discontinue making investments in this fund.
You have investments in two Mirae AMC funds in your portfolio. We advise you to diversify your investments among different AMCs to lower the risk of concentration and to take advantage of the various investing strategies that AMCs follow.
We suggest you to continue to invest in Kotak Emerging Equity Fund since the fund has a good track record, past performance and it is well diversified as compared to its peers.
