Do I need to make changes to my mutual fund portfolio?
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Mirae Asset Tax Saver Fund: Rs 2,000
Axis Long Term Equity Fund: Rs 2,000
Mirae Asset Emerging Bluechip Fund: Rs 1,000
Mirae Asset Large Cap Fund: Rs 1,000
Mirae Asset Short Term Fund: Rs 2,000
SBI Banking & Financial Services Fund: Rs 500
Could you please review my portfolio and suggest changes if required?
Subir Jha, Founder, Buckspeak, A Hyderabad based wealth management firm, responds:
Your mutual fund portfolio has a significant exposure to one particular fund house, which should be reduced. Overall, one should not have more than 25-30% exposure to a particular fund house. You may consider replacing Mirae Asset Large Cap Fund with ICICI Prudential Bluechip Fund. The change I am recommending is purely from a risk management perspective.
Also, don’t just look at the short-term performance (1-3 years) of equity mutual funds, but look for consistent performance across cycles.
This recommendation is based on incomplete information. I am assuming that you have got your risk profiling completed.