Have I invested in good mutual fund schemes based on my risk profile

I am 31 and request your expertise for following. My horizon is for 10 years and I have invested in the following MF's through SIP. My risk assessment is moderate. Is the following portfolio Ok or I need to manipulate. 1) Mirrae Asset Emerging Blue Chip Fund (D) - Rs. 3500, 2) Motilal OsMstFcMul35 (G) – Rs. 2000, 3)SBI Blue Chip (G) – Rs. 5000, 4)DSPBR Micro-Cap (G) – Rs. 3000, 5)Franklin Smaller Companies Fund (G) – Rs. 3000, 6) Franklin India High Growth Companies Fund (G)– Rs. 5000, 7) DSPBR Tax Saver (G) – Rs. 3000, 8) HDFC Mid Cap Opportunities Fund – (G) – Rs. 2000, 9)ICICI Prudential Focused Bluechip Equity Fund – (G) – Rs. 4000, 10) Reliance Tax Saver Fund – (G) – Rs. 6000?

Jul 2, 2017 by Vinod, Mumbai | Mutual Fund

Even though you have invested in good mutual fund schemes for your monthly SIPs the same is not best fit for your risk profile which is moderate. With around 30% allocation to mid & small cap funds, 25% to large cap fund and rest in diversified equity funds (including the ELSS funds), the portfolio construction is quite aggressive and is ideal only for investors with high risk profile.

If you are ready to take moderately high to high risk, then stick to this portfolio as it does not require any changes.However, if you do not ready to take higher risk, then investing in large cap and balanced funds would be ideal and befitting to your risk profile as well. Please think through and take a decision accordingly.

Your current monthly SIP is Rs 36,500 and your investment horizon is 10 years. Based on 12% annual return assumptions, you can expect a corpus of Rs 84.80 Lakhs after 10 years against your total investment of Rs 43.80 Lakhs!

Hope you find the above helpful. Thanks for writing to Advisorkhoj.

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