Investing in 5 funds through SIPs equally distributed. Horizon is 15 years. ICICI Bluechip, SBI Bluechip, ABSL Equity, L&T Midcap, ABSL Small Cap. All selected on long-term historical returns. What other factors should I look at?
- Rajat
The funds that you have chosen are all well managed strategies with different mandates. All these funds are run by proficient managers.
I have been investing for 15 years. I want to invest Rs 5,000 more. Should I invest in one of these or a new one? SBI Bluechip, Axis Bluechip, ICICI Equity and Debt fund, HDFC Small Cap, HDFC Hybrid Equity Fund.
- Nikhil
Individually, the funds could be great options. But we are unaware as to which funds are currently in your portfolio. Hence, difficult to suggest with certainty which fund you should invest in.
I invested in 4 equity mutual funds on 12.4.2019:
- Rs 50,000 - Motilal Oswal Nasdaq 100 FoF
- Rs 50,000 - Edelweiss Greater China Equity Offshore Fund
- Rs 20,000 - HDFC Index Fund Nifty 50 Plan
- Rs 50,000 - ICICI Prudential B&F Services
ICICI and HDFC are in negative returns. Can I shift these funds to Edelweiss and Motilal? Suggest me best equity funds which yield higher returns in low period (3-6 months). Highest risk can be accepted.
- Siva
Your portfolio is lopsided and requires major restructuring. You have significant exposure to global funds. From the domestic perspective, you have an index fund which is passively managed and another thematic fund, which may not be enough to capture opportunities in the Indian market.
Our observations on the above queries
- Generally speaking, a portfolio should ideally have 60% of assets in large cap funds as they play an anchor’s role in the portfolio and provide it a much-needed stability during market downturn. Mid and small cap funds on the other hand provides a kicker to the portfolio over the long-term despite intermittent volatility.
- Investors must consider time frame, personal risk and return objectives when constructing a portfolio. The services of a good financial adviser will go a long way in this aspect.
- Equity investments are not meant for 3-6 months period. They are long term investment avenues where the investment horizon should not be less than 5 years. This is fundamental to investing and applicable even for high-risk investors.
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