Hi Ram, I invest in PPF, VPF & have also bought shares of Accenture via ESPP mode. But I want to go for mutual funds as I have heard that it gives handsome returns. Funds like Parag parikh flexi cap funds, Quant mid cap funds, Hdfc flexi cap funds, Nippon India small cap funds & mirae assets large cap funds are under my investigation. Could you please give your expert view on this?
Thanks,
Amar
Ans: Hello Amar,
It's great to see your interest in diversifying your investment portfolio with mutual funds. You're already on the right track with your investments in PPF, VPF, and shares via ESPP mode. Let's evaluate the mutual fund options you're considering:
• Parag Parikh Flexi Cap Fund: This fund adopts a flexible approach, investing across market capitalizations and geographies. Its global exposure can provide diversification benefits and potentially higher returns.
• Quant Mid Cap Fund, HDFC Flexi Cap Fund, Nippon India Small Cap Fund: These funds focus on mid and small-cap segments, known for their growth potential. However, they also come with higher volatility and risk. It's essential to assess your risk tolerance before investing significantly in these funds.
• Mirae Asset Large Cap Fund: Large-cap funds like these offer stability and consistency in returns. While they may not provide explosive growth like mid and small-cap funds, they offer reliability, making them suitable for investors with a lower risk appetite.
When choosing mutual funds, consider factors such as your investment horizon, risk tolerance, and financial goals. Diversification across different fund categories can help mitigate risk while maximizing returns.
As a Certified Financial Planner, I recommend consulting with a professional to create a well-balanced investment portfolio tailored to your specific needs and objectives.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
