A mutual fund portfolio for a student

I am a 21-year-old student. I have an aggressive risk profile and a long investment horizon. I have started SIPs in the following mutual fund schemes:

Reliance Small Cap Fund - Direct (G): Rs 3,000
L&T Emerging Businesses Fund - Direct (G): Rs 1,000

I am willing to invest Rs 1,000 in SBI Small Cap Fund - Direct(G)

How do you see my mutual fund portfolio? Also, I want to invest Rs 2,000 in a largecap scheme. Please suggest one.

-- Mohit Badaya


Pramod Sharma, partner, Citrine Financial Advisors LLP, responds:

Since you have an aggressive risk profile and a long investment horizon, it is okay to invest in equity mutual funds. But you should divide your investments into different category of mutual funds. Right now, all your investments are in smallcap schemes. Your portfolio should allocate at least 60 per cent in largecap and multicap schemes and 40 per cent in midcap and smallcap schemes. You can start investing Rs 2,000 in Axis Bluechip Fund.