Am I investing in the right mutual fund schemes?

My present portfolio is Kotak Standard Multicap Fund- Rs 2,000, ICICI Prudential Bluechip Fund- Rs 2,000, l&t Midcap Fund- Rs 1,000 and Reliance Small Cap Fund- Rs 1,000. I have a moderate risk appetite, and I will continue these investments for more than seven years. Is my mutual fund portfolio good?
--Rahul Banerjee

You are currently investing in a multicap scheme, a largecap scheme, a midcap scheme and a smallcap scheme. Investors with moderate risk appetite should invest mostly in multicap schemes. Some of these investors also invest a small part of their corpus in largecap schemes to reduce risk and diversify their mutual fund portfolio. However, we do not recommend midcap and smallcap schemes to moderate risk-takers. These schemes are highly risky and they can also be extremely volatile. That's why midcap and smallcap schemes are recommended only to aggressive investors with a capacity to take high risk. It is also important to invest in these schemes with a very long horizon.