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Should I change the schemes in my mutual fund portfolio?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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Last Updated: Feb 25, 2020, 10.42 AM IST
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If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
I have invested in a few mutual funds:
Aditya Birla Sun Life Manufacturing Fund: Rs 1,000/month)
Aditya Birla Sun Life Financial Service Fund: Rs 3,000/month)
HDFC Top 100 Fund: Rs 1,000/month)
Axis Bluechip Fund: Rs. 1000/month)
Motilal Oswal Long Term Fund: Rs 2,000/month
Motilal Oswal Multicap 35 Fund: Rs 1000/month
ICICI Prudential Infrastructure Fund: Rs 2,000/month
Are these mutual funds okay or should I change them for better return?
-- Indrajit Singha

Prableen Bajpai, founder & managing partner, Finfix Research & Analytics, responds:

While you have listed the funds, there is no mention of the financial goal, timeline or your risk appetite. Your portfolio has two large cap funds, one tax-saving fund, one multi-cap fund, two sectoral funds and one thematic fund. Usually any sectoral or thematic fund tends to be riskier than diversified funds since the exposure is concentrated towards a sector. It is thus advisable to allocate a smaller sum to these funds and consider them as the satellite portfolio and not the core one.

Having said that, you must set your financial goal so that you can arrive at the amount of money needed, and time on hand since these factors would in turn would influence your risk-taking ability. Only when all these variables are known, one can accurately comment on the suitability of these funds in your portfolio.

(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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