I am new to mutual funds. Should I be more aggressive?

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I am 24 years old, and I have just entered the mutual fund space. I am looking for a 10-year duration with moderate risk and can spend Rs 5,000 per month on SIP. I am going with Axis Bluechip Fund, Axis Small Cap Fund, Mirae Asset Emerging Bluechip Fund and an ELSS fund. Is my portfolio good? Or should I be more aggressive and include debt or gilt funds in my portfolio??
-Subham Roy

You are currently investing in a large cap scheme, small cap scheme, large & mid cap scheme, and a tax saving mutual fund scheme. A moderate equity investor is typically asked to invest mostly in multi cap mutual funds. He can also invest in large cap scheme if he wants to diversify his portfolio to reduce risk. Small cap schemes and large & mid cap schemes are meant aggressive investors with a very high tolerance level. They are not suitable for your moderate risk profile.

The last part of the question is not clear. Are you trying to bet on a rate cut and benefit from it by being an aggressive debt mutual fund investor? If yes, that is a bad strategy.
  • 8.69%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.10 YearsTime taken to double money
  • 1.62%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.5 YearsTime taken to double money


You should always choose your mutual funds based on your financial goals, investment horizon, and risk profile. As a rule, you should stick to debt mutual funds for your short-term goals, and equity mutual funds for your long-term goals.

It is extremely important to choose debt schemes based on your investment horizon and risk profile. For example, you should stick to overnight funds and liquid schemes to park money for a few days. If you want to park money for a few months, you may choose ultra short duration scheme. To park money for a year or more, invest in short duration schemes.

Similarly, you should choose equity mutual funds that are in line with your risk profile. For example, if you are moderate equity investor, you should invest mostly in multi cap mutual funds. If you are conservative equity investor, you should invest mostly in large cap mutual funds. Aggressive investor can bet on mid and small cap schemes.

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You should seek the help of a mutual fund advisor near you if you are not clear about the basics of investing in mutual funds.
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