12,080.85-45.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

A mutual fund to invest extra Rs 2,000 for 7-8 years

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Last Updated: Jan 23, 2020, 12.02 PM IST
0Comments
iStock
mutual fund for child
Tax Calculator
I am a central government employee and a moderate risk taker. I am investing Rs 2,000 per month in Mirae Asset Emerging Bluechip Fund-Direct-Growth, Rs 2,000 per month in Aditya Birla Sun Life Frontline Equity Fund
-Direct-Growth, and Rs 1,500 per month in Axis Bluechip Fund-Direct-Growth. I want to invest Rs 2,000 more for at least 7-8 years. Which fund should I select?
-Sonuprava Sahoo


We typically ask equity investors with a moderate risk profile to invest mostly in multi cap mutual fund schemes. If they want to reduce risk by diversifying the portfolio, we also ask them to add large cap mutual funds.

You are currently investing in a large & mid cap scheme, and two large cap schemes.

Large and mid cap schemes invest a minimum 35% in mid cap stocks. This makes them a risky proposition - that is why these schemes are recommended to investors with a higher risk appetite. Just make sure that you are okay with the extra risk in your portfolio.

You do not need an extra scheme. It is not a wise strategy to invest a small amount in too many scheme. You just need one or two schemes - a multi cap scheme and large cap scheme - in your mutual fund portfolio. You may think of adding more schemes when you start investing a very large amount.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service