Ask ET Mutual Funds: Should I change my mutual funds?

I am 31 years old. I have started SIPs in SBI Bluechip (Rs 2,000), ICICI Value Discovery (Rs 2,000), Mirae Emerging Bluechip (Rs 2,000), DSP BlackRock Micro Cap (Rs 3,000) and HDFC Balanced Fund (Rs 2,000). My goal is wealth creation. My investment horizon is more than 15 years. I have a PPF account (about Rs 2.5 lakh), monthly NPS contribution of Rs 5,000, three LIC policies that will mature on 2022, 2031, 2032. Kindly review my portfolio and suggest any change if needed. I am a moderate risk investor.
--Madhusudan Sahoo

You have chosen good schemes. However, Mirae Emerging Bluechip Scheme is a midcap fund and DSP BlackRock Micro Cap Fund is a smallcap fund. They carry a higher risk and not in line with your moderate risk profile. You can reassess your risk profile (you can use online tools) and decide whether you would want to continue with these two schemes.

It seems, you are confusing your insurance plans with investment products. That is a costly mistake. When you buy insurance plans with saving/investing element in them, you get a small insurance cover and modest returns. A better way would be to buy a pure term plan that offers you a large life insurance cover for a small premium. For investment needs, you should always choose mutual fund schemes that matches your investment horizon and risk profile.



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