Ask ET Mutual Funds: Have I picked up the right schemes?

I am a 24-year-old government servant. I want to go for aggressive investing. I have recently started investing in mutual funds. I am investing for 5-7 years. I am investing in ICICI Prudential Value Discovery Fund, Birla Sun Life Frontline Equity Fund and Birla Sun Life Advantage Fund. I have also invested in ICICI Prudential Liquid Fund. Are these funds okay?

--Sumit Roy

You have invested in funds with a good performance record. However, they are not in line with your aggressive risk profile. For example, ICICI Prudential Value Discovery Fund and Birla Sun Life Advantage Fund are multicap funds and Birla Sun Life Front Line Equity Fund is a largecap fund. They are not meant for aggressive equity investors, but for equity investors with a moderate risk appetite. Liquid fund, as you know, is one of least risky debt funds. If you are really aggressive as you claim, then you should be investing more in microcap funds, smallcap funds, midcap funds, sectoral funds, etc.

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