Do I need to change my mutual fund portfolio?

I am 25 years old. I have been investing in mutual funds for the last three years. Started with investing Rs 20,000 and increased it to Rs 38,000 with my salary hike.

I am looking to invest for the long term, around 10-15 years. My goal is to buy a house and have some savings. I started with a moderate risk profile but now can invest in a bit high-risk profile.

My portfolio looks like this:

• L&T Tax Saver: Rs 2,000
• Franklin Tax Saver: Rs 1,500
• Tata Tax Saver: Rs 2,000
• Aditya Tax Saver: Rs 2,000
• Reliance Tax Saver: Rs 2,000
• Axis Tax Saver: Rs 2,000
• Mirae Tax Saver: Rs 2,000
• DSP Tax Saver: Rs 2,000

• Reliance Pharma: Rs 2,000
• Tata Digital Fund: Rs 3,000
• ICICI Technology: Rs 3,000
• Axis Focus 25: Rs 2,000
• Axis Bluechip: Rs 2,000
• Axis Small Cap: Rs 2,000
• ICICI Value Discovery: Rs 1,500
• Franklin Equity Hybrid: Rs 1,500
• ICICI Balance: Rs 3,000
• HDFC Hybrid Equity: Rs 2,000

Since I can invest in high-risk funds now, any suggestions on which fund I can choose or any changes which I should make in my portfolio?

-Sakshar Gupta

You are investing in too many schemes. In fact, you are investing in eight tax-saving schemes. Apart from that, you are also investing in 10 other schemes. Investing a small amount in too many schemes will not help you to diversify your portfolio. It often results in over-diversification and duplication of the portfolio.

You don’t need to invest in more than three or four schemes, including a tax saving scheme.


First, take an online quiz to find out your risk profile. An increase in income alone will not increase your risk tolerance. You also will have to include your mental makeup. There are many individuals with higher income who can’t bear the thought of risky investments.

Once you know your risk profile, make sure to have a portfolio that is in line with your risk profile. If you don’t have a thorough knowledge of mutual funds, seek the advice of a reliable advisor. Ask your friends and colleagues for reference.