iStockI am a conservative investor and have an investment horizon of 10+ years. Currently, I have an active SIP on Mirae Asset Emerging Bluechip Fund. Considering my risk profile, I would like to opt for a systematic transfer plan from the fund.
I have existing investments in SBI Bluechip Fund, DSP Small Cap Fund, and Franklin India Focused Equity Fund. I want to reshuffle my existing portfolio in line with my risk profile.
Request you to suggest a SIP for long-term investment. I have narrowed down these schemes to start SIP.
Axis Bluechip Fund: Rs 1,500
STP from existing Mirae Asset Emerging Bluechip Fund to Mirae Asset Largecap Fund.
Axis Focused 25 Fund: Rs 1,500
Request you to suggest a suitable solution for the same.
- Natarajan
Your mutual fund portfolio is not in line with your conservative risk profile. Only SBI Bluechip Fund, a large cap mutual fund, is in line with your risk profile. The rest of the schemes are not suited for someone in your risk profile. A large & mid cap scheme, as you have figured out, is meant for investors with a higher risk appetite. Similarly, a small cap scheme is meant for someone with a very high risk-taking ability. Even multi cap schemes, especially those with a concentrated or focused portfolio, calls for higher risk.
As a rule, a conservative equity investor should invest mostly in aggressive hybrid schemes or large cap schemes. These schemes are relatively less risky and volatile than other pure equity schemes. They are considered ideal to growth wealth over a long period without exposing oneself to a lot of volatility.
You may stop your SIP investment in Mirae Asset Emerging Bluechip Fund and start investing the money in your existing large cap scheme. You can hold on to your investments until the exit loads are not applicable and your investments qualify for long-term capital gains tax. Or you could even hold on to your investments for a very long period.
If you are not very clear about mutual fund categories and your risk appetite, you should seek the help of a mutual fund advisor. Always remember that every investment decision comes at a cost, and revoking it also comes with a price. Often it results in a lost opportunity to make money. Keep in mind that investing a small sum regularly is important to create wealth over a long period.
I have existing investments in SBI Bluechip Fund, DSP Small Cap Fund, and Franklin India Focused Equity Fund. I want to reshuffle my existing portfolio in line with my risk profile.
Request you to suggest a SIP for long-term investment. I have narrowed down these schemes to start SIP.
Axis Bluechip Fund: Rs 1,500
STP from existing Mirae Asset Emerging Bluechip Fund to Mirae Asset Largecap Fund.
Axis Focused 25 Fund: Rs 1,500
Request you to suggest a suitable solution for the same.
- Natarajan
Your mutual fund portfolio is not in line with your conservative risk profile. Only SBI Bluechip Fund, a large cap mutual fund, is in line with your risk profile. The rest of the schemes are not suited for someone in your risk profile. A large & mid cap scheme, as you have figured out, is meant for investors with a higher risk appetite. Similarly, a small cap scheme is meant for someone with a very high risk-taking ability. Even multi cap schemes, especially those with a concentrated or focused portfolio, calls for higher risk.
As a rule, a conservative equity investor should invest mostly in aggressive hybrid schemes or large cap schemes. These schemes are relatively less risky and volatile than other pure equity schemes. They are considered ideal to growth wealth over a long period without exposing oneself to a lot of volatility.
You may stop your SIP investment in Mirae Asset Emerging Bluechip Fund and start investing the money in your existing large cap scheme. You can hold on to your investments until the exit loads are not applicable and your investments qualify for long-term capital gains tax. Or you could even hold on to your investments for a very long period.
If you are not very clear about mutual fund categories and your risk appetite, you should seek the help of a mutual fund advisor. Always remember that every investment decision comes at a cost, and revoking it also comes with a price. Often it results in a lost opportunity to make money. Keep in mind that investing a small sum regularly is important to create wealth over a long period.
( Originally published on Apr 07, 2020 )
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