What should be the percentage allocation to various mutual funds

I have started with 4 MFs and planning to keep on the same for the long run(20+ Years). 2 - Large Cap (Kotak Select Focus Fund - Direct Plan (G), Birla Sun Life Top 100 Fund - Direct Plan (G)), 1 - Mid Cap (L&T Emerging Businesses Fund - Direct Plan (G)) and 1 - Balanced Fund (HDFC Balanced Fund - Direct Plan (G)). Initially, I have started with 5k but by the start of next year, I will increase this to 10k altogether. Please suggest the amount allocation at present and for the next year plan. It would be good if you could provide me the percentage allocation for each of this 4 funds?

Aug 21, 2017 by Bravo Bimo, Bangalore | Mutual Fund

Please note that there is no thumb rule for standard percentage allocation for different category of mutual funds. This should purely be based on your risk profile, age and the investment objective.

You have selected good funds from large cap, mid cap and balanced fund category and the overall risk on the portfolio is moderately high. As your investment horizon is 20 years you can continue with these funds and may allocate equal amount to each fund.

However, if your risk profile is high to very high, then you may allocate more to midcap fund. Likewise, if your risk profile is moderate or moderately high, then do not increase allocation to mid cap fund, instead allocate more to large cap fund and balanced funds.

While the thought of investing for 20 years or so is good, you must continue to review your mutual fund portfolio once every year just to make sure that the respective fund performances are aligned with your investment objectives and long term goals.

Please always refer to this tool to see top performing funds in each category https://www.advisorkhoj.com/mutual-funds...

Thanks for writing to Advisorkhoj.

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