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Should I invest in Mirae Asset Emerging Bluechip Fund?

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|
Updated: Jun 18, 2019, 10.09 AM IST
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I am 33 years old. I am planning to invest Rs 50,000 per month. I have two goals: to build a house in five years and to build wealth. To build a house in five years, I want to invest Rs 20,000 in Reliance Large Cap Fund and Rs 20,000 in Mirae Asset Emerging Bluechip Fund. For the second goal, I want to invest Rs 5,000 each in SBI Small Cap Fund and HDFC Small Cap Fund. Is my diversification and portfolio okay? I am a moderate risk-taker. Is my decision to invest in Mirae Asset Emerging Bluechip Fund right?
-Vinay Kumar


You should invest in equity mutual funds only if you have a horizon of at least five to seven years. This is important, especially when the market is hovering around its all-time high and there are many uncertainties in the market. For your five-year goal, you should consider investing in an aggressive hybrid scheme. You may also invest in a large cap scheme if you are ready to postpone your goal by a year to two more if the stock market gets into a rough phase.

However, a large & mid cap scheme like Mirae Emerging Bluechip Fund is not suitable for investing for five years. Large & mid cap schemes have the mandate to invest at least 35 per cent of the corpus in mid cap stocks. Mid cap stocks can be volatile and they are also risky. You should invest in them only if you have a higher risk appetite and longer investment horizon of seven to 10 years.

Similarly, you have chosen two small cap schemes for your long-term financial goal. Small cap schemes are recommended to investors with an aggressive risk profile with a very high risk tolerance level and longer investment tenure. These schemes can be extremely volatile and risky and only investors with very high risk appetite would be able to withstand the volatility associated with them. Are you okay with that?

Multi cap mutual fund schemes are considered ideal for investors with a moderate risk profile. These schemes can invest across market capitalization and sectors based on the view of the fund manager. You can also add large cap schemes if you want to diversify and reduce the overall risk in your portfolio.

Best large cap mutual funds to invest in 2019
Best mid cap mutual funds to invest in 2019
(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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