An ideal mutual fund portfolio for a 21-year-old investor

I am 21 years old and new to mutual funds. I did my own research to invest Rs 2,500 via monthly SIP in mutual funds. My investment is for a long horizon. Help me with my portfolio:

1. Reliance Small Cap Fund Growth - Rs 500
2. SBI Small Cap Fund Growth - Rs 500
3. L&T Emerging Business Fund Regular Growth - Rs 500
4. L&T Midcap Fund Growth - Rs 500
5. ICICI Prudential Midcap Fund Growth - Rs 500
--Anshul Abhinav

You have omitted a crucial information: your risk profile. We believe that an investor should choose his mutual funds in line with his risk profile. The other factors to keep in mind are: investment goal and time in hand to achieve those goals.

You have chosen good schemes, but they are either midcap or smallcap schemes. These categories are suitable for aggressive investors who can take a lot of risk and withstand period volatility. If you are an aggressive investor, you may continue to with your schemes.


Do not assume that you can take a lot of risk because you are young. Every person has a risk tolerance level. You should do some online quiz to find out how much risk can you tolerate.