How is my mutual fund scheme selection

You are doing a wonderful inspiring job by helping there's with their queries. I have read almost all near recent answers given by you. I too want to hear from you about my scenario. Here are my questions. 1) I am 28. I need to grow financially. I started SIP in SBI Blue Chip, Mirae Asset India Opportunities, DSPBR Mid Cap, Mirae Blue Chip, HDFC Balanced, Franklin High Growth. Is this portfolio good for 15-20 years. I can review and rebalance as and when needed? 2) Is L&T Emerging Business Fund is good for long term? 3) I have seen from your MF research tools, even worst performing fund in mid, multi cap and small cap space delivered decent returns in last 10-15 years. If a fund delivered 30% returns with 15 standard deviation, definitely it will deliver 15-45 % returns. Some of your articles also showed that Reliance Growth, Franklin Prima etc has given 45-100 times returns in 20+ years time. Still is it risky to believe mid and small cap? Thanks much for helping people like us with your answers with a great commitment?

Jun 7, 2017 by Pavan, Hyderabad | Mutual Fund

Thank you very much for the kind words and we truly appreciate that.

1. You have selected good schemes for your ongoing SIPs and given each fund's consistent performance track record these are good for your long term investing objectives. Having said that, you must review your mutual fund portfolio at least once every year just to ensure that the performances are aligned with your investment objectives.

2. L&T Emerging Business is comparatively a new scheme and not very well rated in the mid and small cap category. we think, you should go with more established names like, Mirae Asset Emerging Bluechip Fund, Birla Sun Life Pure Value fund, Canara Robeco Emerging Equities Fund and Reliance Small Cap Fund.

3. Yes, historically mid cap funds have given the highest returns but they have the highest risk as well. In mutual Funds, returns are typically related to risk, the higher risk you can take, the higher returns you can expect. If your investment horizon is above 5 years and you are ready to take high risk, you can invest a portion of your portfolio into mid and small cap funds. However, while selecting funds you should not consider or see only the historical returns. You should see the performance consistency of the respective funds. You can try this tool in our website for selecting funds Top Consistent Mutual Fund Performers

Hope the above helps. Thanks for writing to Advisorkhoj.

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