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    Is this mutual fund portfolio suitable for an aggressive investor?

    Synopsis

    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
    I am planning to start a monthly SIP of Rs 20,000 in mutual funds for 10-15 years. I am an aggressive investor. My goal is to create Rs 1 crore in 10+ years.

    I have created a portfolio. Please check and confirm whether I can go ahead and invest.
    ICICI Prudential Bluechip Fund: Rs 4,000
    Axis Bluechip Fund: Rs 4,000
    Motilal Oswal Multicap 35 Fund: Rs 5,000
    HDFC Mid-Cap Opportunities Fund: Rs 4,000
    HDFC Hybrid Equity Fund/SBI Small Cap Fund/ Kotak Standard Multicap Fund (which is better): Rs 3,000
    - Sujith

    You state your risk profile as aggressive. However, your chosen mutual portfolio is not line with your risk profile. You have chosen two large cap schemes that are recommended to conservative equity investors. Even hybrid schemes are suitable for conservative equity investors. A multi cap mutual fund is ideal for moderate investors. Only the mid cap and small cap schemes are in line with your risk profile.

    Here are some pointers for you. One, reassess your risk profile to make sure that it is indeed aggressive. Many new investors love to believe that they have a very high risk profile. However, they realise the real meaning of risk only when the market gets into a rough parch and their investments lose value heavily. Take an online quiz if need be. Make sure that your schemes are in line with your risk profile. For example, if you are a conservative investor, you should invest mostly in large cap mutual funds. If you have an aggressive risk profile, you should invest mostly in mid cap and small cap mutual funds.

    If you do not understand the basics of investing in mutual funds, it is always better to seek the help of a seasoned mutual fund advisor.
    (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.)

    1 Comment on this Story

    satya ranjan nayak321 days ago
    you are investing in two large cap , one multicap, one midcap, one hybrid funds. As you mentioned, u''re a aggressive investor. Basically, largecap funds are suitable for conservative investor. Motilal oswal 35 has no consistency. Hdfc midcap is a good scheme. Hdfc hybrid equity is also suitable for conservative investor.
    For 15 years investment time period, schemes are
    1.mirae assets bluechip 30%
    2.kotak standard
    multicap 40%
    3.hdfc midcap 20%
    4.axis smallcap 10%
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