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Is my mutual fund portfolio diversified?

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Last Updated: Jan 07, 2020, 11.13 AM IST
I am investing in the following funds:
Canara Robeco Emerging Equities Fund (D): Rs 3,000
L&T Emerging Business Fund (R): Rs 1,000
Mirae Asset Hybrid Equity Fund (D): Rs 2,000
Mirae Asset Emerging Equities Fund (D): Rs 3,000
Is my portfolio is diversified? I am planning to invest for 15 -20 years. My risk profile is moderate. Shall I include PPF in my portfolio?
-Naga Babu

Your mutual fund portfolio is not in line with your started risk profile. A moderate equity investor is typically asked to invest mostly in multi cap mutual fund schemes. He or she may also be asked to add large cap mutual funds if s/he wants to diversify and reduce the overall risk in the portfolio.

You are currently investing in two large & mid cap schemes, a small cap scheme, and aggressive hybrid scheme. Large & mid cap schemes and small cap schemes are meant for aggressive investors with a high risk appetite. This is because of their exposure to mid cap and small cap stocks. These stocks are extremely risky and volatile. That is why they are recommended only to aggressive investors with a long investment horizon.

You should adopt a goal-based investing. List your various goals and try to quantify them. Provide for inflation and taxes to calculate realistic target corpus to achieve those goals. Choose mutual fund schemes based on your goals, horizon, and risk profile.

If you find the task a bit daunting, you should seek the help of a reliable mutual fund advisor for a personalised advice.

(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.)
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