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Can these mutual funds deliver?

equity funds
I am 41 years old. I am new to mutual funds. I would like to invest for 20 years. I have a moderate risk profile. I want to invest monthly in Axis Bluechip Fund (Rs 5,000), Axis Midcap Fund (Rs 3,000) and Kotak Standard Multicap Fund (Rs 4,000). I am expecting an average return of 10 per cent at the end. Is my selection appropriate? Can these mutual funds deliver?
- Bijumon Pillai


First, if you are a new investor to mutual funds, please seek the help of a mutual fund advisor before proceeding further. It is not easy to manager your investments on your own. You should try that only after gaining some experience and confidence after investing for a few years. During the initial years, you would need a lot of personal guidance and reassurances during troubled times in the market. Otherwise, you may panic and sell or stop your investments.

We typically ask moderate equity investors to invest mostly in multi cap mutual funds. They can also invest a part of their investments in large cap schemes if they want to diversify and reduce the overall risk in the portfolio.

You have chosen a large cap scheme, mid cap scheme, and multi cap scheme. They are good schemes, but the mid cap scheme does not go with your risk profile. An investor with your risk profile should ideally invest mostly in Kotak Standard Multicap Fund. The investor can also use Axis Bluechip Fund to diversify and reduce the overall risk.

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