8,748.75-43.45
Stock Analysis, IPO, Mutual Funds, Bonds & More

Is IIFL Focused Equity Fund a safe option?

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: Feb 20, 2020, 03.15 PM IST
0Comments
iStock
mf5
I am 24 years old. I am into family business. I am a beginner in mutual funds. I was going through the multi cap equity funds and found that IIFL Focused Equity Fund is performing very good. Is it a safe option?
-Sayantan Halder


You are on the verge of committing the common error made by new mutual fund investors. Many investors choose mutual fund schemes based on short-term returns offered by them. You should never make this mistake. You should always choose mutual fund schemes based on your financial goal, investment horizon, and risk profile.

Multi cap mutual funds are recommended to equity investors with a moderate risk profile and an investment horizon of at least five to seven years. Multi cap mutual funds invest across market capitalisation and sectors/themes based on the market outlook of the fund manager. These schemes are relatively riskier than large cap mutual funds, but have lower risk than mid cap and small cap mutual fund schemes.

IIFL Focused Equity Fund is a good performer in the focused multi cap category. As the name says, the scheme invests in a focused or concentrated portfolio. This makes focused multi cap schemes riskier than diversified equity schemes. When you invest in a concentrated portfolio, one two bets going wrong can have a large impact on the portfolio.

If you do not understand much about mutual funds, you should seek the help of a mutual fund advisor before investing in a mutual fund scheme. Many new investors find it difficult to deal with difficult phases in the markets when their investments lose value sharply. In such phases, they would need the help of a mutual fund advisor who may hand-hold and guide them properly. Do not take unnecessary risks with your investments. Always be focus on your goals and continue with your investments to create wealth over a long period.
(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.)
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