Can I invest in Kotak Standard Multicap Fund?
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Rs 2,000 monthly SIP each in SBI Magnum Multicap Fund and ICICI Prudential Multi Asset Fund from March 2018 for 15 plus years.
Invested Rs 6 lakh lumpsum in HDFC Balanced Advantage Fund (monthly dividend option) for 15 plus years from February 2019 (plan to increase the amount by Rs 1 lakh annually for retirement life, so the dividends can be used after retirement).
Rs 3 lakh in SBI Equity Minimum Variance Fund for 10 years from March 2019 (performance is not satisfactory).
Should I alter my portfolio? The above mentioned funds are invested through my fund advisor.
I am also planning to invest a lumpsum of Rs 5000 each in two more mutual funds for 15 plus years and planned to increase the amount in both the funds by Rs 5,000 each every year in the form of additional purchase. For this I have chosen one fund as Kotak Standard Multicap Fund and not able to decide on the other fund. Please help me what to do.
A few quick observations. One, if you are a conservative equity investor, you should invest mostly in aggressive hybrid schemes and/or large cap mutual funds. Multi cap mutual funds are suitable for investors with a moderate risk profile.
Two, it is not clear why you are investing in the monthly dividend option in a balanced advantage fund for your retirement. If you want to grow your retirement corpus, you should invest in a large cap scheme and choose the growth option.
It seems, you have invested in SBI Equity Minimum Variance Fund during the NFO. It is almost like an index fund, as it invests 90-100 per cent in stocks in the basket of Nifty index. It may also invest 0-10 per cent in debt instruments. You could have chosen an existing index scheme with a longer performance record instead of betting on a new index scheme.
Kotak Standard Multicap Fund is one of the best schemes in the multi cap category. However, it doesn’t match your risk profile. As said before, multi cap schemes are ideal for investor with a moderate risk appetite.
You should adopt a goal-based investment approach if you are serious about creating wealth to meet your various financial goals. That means, you should identify your goals, put a number to them after including inflation rate and taxes. This will help you to figure out how much you need to invest and in which mutual funds to achieve your goals.