I am 32 years old. I have been investing Rs 22,000 per month through SIPs in different mutual funds. I have a long horizon and I have a moderate risk appetite. I am feeling that I am investing in too many funds and it is overlapping with each other. It would be a great help if you could guide or help me to correct the portfolio. How many funds ideally should I have and which to keep or remove ? How much should I invest in each fund?
Axis Bluechip Fund: Rs 6,000 (investing since last year)
Axis Midcap Fund: Rs 2,000 (investing since last two months)
Axis Small Cap Fund: Rs 1,000 (investing since last two months)
Mirae Asset Tax Saver Fund: Rs 2,000 (investing since last five months)
Tata Digital India Fund: Rs 2,000 (investing since last two months)
Tata Balanced Advantage Fund: Rs 2,000 (started this month)
Parag Parikh Flexi Fund: Rs 3,000 (investing since last three months)
SBI Contra Fund: Rs 2,000 (investing since last two months)
Mahindra Manulife Balanced Advantage Fund: Rs 1,000 (investing since last two months)
Motilal Oswal NASDAQ 100 FoF: Rs 1,000 (investing since last two months)
--Shivam Sharma
Investing a small amount in too many mutual fund schemes are not likely to offer the benefits of diversification or help you to maximize returns. This is especially true when you are investing a modest amount. We always ask our readers to choose mutual funds based on their goals, investment horizons, and risk profile. For example, a conservative investor trying to create wealth over a long period of time without taking too much risk and volatility should invest in large cap mutual funds. If the investor has a moderate risk appetite, he can choose flexi cap funds. You don’t need more than four to six schemes to diversify your portfolio. If you are investing a small amount, you don’t need to invest in more than one or two schemes. Investing in every mutual fund category will not offer you the best return or diversification. Have a focused portfolio in line with your goal, horizon, and risk profile - this is extremely important if you are investing a small amount.
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