A mutual fund portfolio for a risk-averse new investor

I am new to mutual funds. I plan to invest for a long term, five years, in these schemes: Tata Digital India (Rs 2,000), L&T Infrastructure Fund (Rs 2,000), Tata India Consumer Fund (Rs 2,000), and SBI FMCG Fund (Rs 4,000). Is it okay for me to invest in these funds via SIPs? I don’t want too much risk.
-- Joseph Joy

Vishal Ramaswamy, a mutual fund advisor, responds:

All your investments are in sector funds. Sector specific funds has the highest risk.

You have chosen a technology, infrastructure, consumer, and FMCG Fund. SIP is the smart choice here. However, I would advise you to invest in a diversified portfolio, and leave the choice of betting on a sector funds to the fund manager.


With that in mind, I would ask you to replace Tata Digital India Fund with Kotak Select Focus Fund and SBI FMCG Fund with L&T Emerging Businesses Fund.

This will help you to reduce your exposure to sector/thematic funds. And you should invest only in two sector funds, infrastructure and consumer funds.These are the best bets over the long term, that means greater than five years.