iStockI have been investing Rs 5,000 per month each in Axis Bluechip, Axis Focused 25, Parag Parikh Long Term Equity and Axis Long Term Equity, and Rs 1,000 each in Axis Midcap and SBI smallcap. I am 25 years old and aim to create a good corpus over a period of 10-15 years. What are your comments on the portfolio and fund selection? I have a moderate risk profile.
-Preetam Chand
You are currently investing in a large cap scheme, focused multi cap scheme, multi cap scheme with an international exposure, tax saving or ELSS fund, mid cap scheme, and a small cap scheme. Investors with moderate risk appetite are typically asked to invest mostly in multi cap schemes. They are also asked to take a small exposure to large cap schemes if they want to diversify and reduce the overall risk in the portfolio. As you can see, your investments in multi cap schemes and large cap scheme are in line with your risk profile.
However, mid cap and small cap schemes are not suited for your risk appetite. These schemes are meant for aggressive investors with a very high risk appetite and ability to tolerate volatility. Are you sure you can handle the extra risk and volatility associated with these schemes? If you can, you may continue with the schemes. Otherwise, you should consider stopping your investments in them.
Age is on your side. You can use it to your advantage if you continue with regular investments irrespective of the market conditions. It will help you to create a lot of wealth over long period. Keep track of your schemes and review your portfolio at least once or twice a year.
-Preetam Chand
You are currently investing in a large cap scheme, focused multi cap scheme, multi cap scheme with an international exposure, tax saving or ELSS fund, mid cap scheme, and a small cap scheme. Investors with moderate risk appetite are typically asked to invest mostly in multi cap schemes. They are also asked to take a small exposure to large cap schemes if they want to diversify and reduce the overall risk in the portfolio. As you can see, your investments in multi cap schemes and large cap scheme are in line with your risk profile.
However, mid cap and small cap schemes are not suited for your risk appetite. These schemes are meant for aggressive investors with a very high risk appetite and ability to tolerate volatility. Are you sure you can handle the extra risk and volatility associated with these schemes? If you can, you may continue with the schemes. Otherwise, you should consider stopping your investments in them.
Age is on your side. You can use it to your advantage if you continue with regular investments irrespective of the market conditions. It will help you to create a lot of wealth over long period. Keep track of your schemes and review your portfolio at least once or twice a year.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
Get Unlimited Access to The Economic Times
