I am confused about my mutual fund portfolio. Should I rebalance?

Request your views on the following SIPs in mutual funds:
Mirae Asset Emerging Bluechip Fund: Rs 10,000
Parag Parikh Long Term Equity Fund: Rs 10,000
Axis Growth Opportunities Fund: Rs 6,000
Canara Robeco Bluechip Fund: Rs 5,000
Mirae Asset Midcap Fund: Rs 5,000
Canara Robeco Smallcap Fund: Rs 5,000
Mirae Asset Hybrid Fund: Rs 10,000
Motilal Nasdaq 100 FoF: Rs 8,000
The total SIP is Rs 59,000. I am a moderate risk taker. I have an investment horizon of 7-10 years plus. Request your valuable views on whether I should rebalance the SIPs? I am quite confused?
– Gaurav Barchha

Ashish Modani, Founder, SLA Financial Solutions, responds :

When we plan for personal finance, we need to include many important factors like your risk taking capacity, your other mix of assets, your liability, your financial goals, and so on. The most important among these aspects is financial goals. End of the day, what matters to you is your life. Unfortunately, I have no idea about your goals.


Sadly, most investors think that if they choose a good fund, their life is sorted. Unfortunately, it is not so. All the funds you have mentioned did have a past, and the ones which are old do have a decent history, have gone through their share of ups and down. Even in future, every fund will go through highs and lows.

Today, if you are seeing good performance of any fund and trying to take an investment decision based on it, take my words, it will perform badly one day. So, first of all, don’t base your decision based on funds. Any financial expert, who is not trying to be a salesperson, can take care of asset allocation and can help you remain indiscipline.

You also said that you are confused. I would rather suggest that you take the help of any financial expert and align your investments with your dreams. Have investment across every asset class and keep rebalancing. That is the best one can do to manage finance.

As far as funds are concerned, you can always have a portfolio mix of equity, debt and gold. You seem to have picked up only equity-based funds. Key to success in investment management is not about picking the best funds or star-rated funds, it is all about discipline we maintain both in investment and in our behavior. The more we focus on things we cannot control, the more we will feel like victims of the market and victims usually don’t win.