Should I shift to multi cap schemes from large cap schemes?
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Reliance Large Cap Fund: Rs. 15,000
Mirae Asset Large Cap Fund: Rs 15,000
Aditya Birla Sun Life Equity Fund: Rs 15,000
Kotak Standard Multicap Fund: Rs 15,000
HDFC Mid-Cap Opportunities Fund: Rs 5,000
L&T Mid Cap Fund: Rs 5,000
SBI Small Cap Fund: Rs 5,000
Should I continue to invest in large cap schemes or switch to multi cap schemes?
One, you have very high return expectations from your mutual fund investments. We believe you can hope to get 10-12% from your equity mutual fund portfolio over 10 years. Such a conservative calculation is better, as it would help you to save and invest more. It is better to be conservative when it comes to your long-term financial goals like retirement as you cannot add more money on the eve of your retirement.
We typically ask equity investors with a moderate risk profile to invest mostly in multi cap schemes. If the investor wants to diversify and reduce the overall risk in the portfolio, we also ask the investor to add large cap mutual funds to the portfolio.
You are currently investing in two large cap mutual funds, two multi cap mutual funds, two mid cap schemes and small cap schemes. Mid cap and small cap mutual funds are not in line with your risk profile. So, take a relook at these investments. As said before, your portfolio should be mostly in multi cap mutual funds. You may invest in large cap schemes if you want to play it safe and reduce the overall risk in the portfolio. However, you should remember that the percentage of large cap mutual funds in your portfolio should not be very large as it can drag the overall returns from the portfolio.