Ask ET Mutual Funds: How to build a moderately aggressive mutual fund portfolio

I am 21 years old and want to build my mutual fund portfolio. I have Rs 2.5-3.0 lakh. I am looking forward to invest for five years. Which mutual funds would be best to start with considering that I want my portfolio to be moderately aggressive?

-- Nishtha Bhola

Subhash Chawan, Managing Partner, Moat Wealth Advisors:


Considering you have a lumpsum to invest and want to go for a moderately aggressive portfolio, I would recommend that you go for an allocation iof 70 per cent in equity and 30 per cent in debt. I am assuming that you are just starting at 21 years of age. You can invest the 30 per cent debt allocation in short term debt funds like DSP Blakcrock Money Manager Fund and 70 per cent equity part in Kotak Select Focus Fund and HDFC Midcap Opportunities Fund through Systematic Transfer Plan (STP).

Systematic Investing per month lets you play with Volatility. Since you are investing through a lumpsum, STP works best for you to manage volatility in the equity market.

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