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    Can I bet on aggressive hybrid schemes to meet long-term goals?

    Synopsis

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

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    I have investments in the following funds:
    DSP Tax Saver Fund: Rs 8,000 (SIP of Rs 2,000)
    DSP Equity & Bond Fund: Rs 59,000 (SIP of Rs 1,000)
    ICICI Prudential Equity & Debt Fund: Rs 23,000 (SIP of Rs 3,000)
    SBI Magnum Multicap Fund: Rs 5,000 (SIP of Rs 1,000)

    My queries are:
    Are my (2 & 3) mutual fund schemes good for the long term?
    Can I switch to the direct plan of DSP Equity & Bond Fund? Or Should I switch to any other fund?
    I am planning to increase the SIP amount. Please recommend in which scheme should I invest?
    --Nithen Kn

    Rishabh Parakh, Founder, Money Plant Consultancy, responds:

    Looking at your mutual funds, it seems, you have a conservative risk profile. You have not provided information about your income, financial goals, etc.

    If you are looking to invest for a long term, you can in pure equity funds instead of aggressive hybrid funds. It will fetch you better returns.

    Things You should consider
    • Annualized Return
      for 3 year: 3.21%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.6 Years
    Things You should consider
    • Annualized Return
      for 3 year: 3.4%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.2 Years
    Yes, you can switch to a direct plan if you can manage your investments on your own.

    As I said earlier, mutual fund allocation is done on the basis of financial planning. If you are a conservative investor or can take medium risk, you can invest in a mix of multi cap and large cap funds. Some good funds you can consider investing are Mirae Asset Large Cap Fund, Nippon India Large Cap Fund, Axis Multicap Fund, and Kotak Standard Multicap Fund.
    (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.)
    The Economic Times