Ideal mutual fund portfolio for a new investor

I am 28 years old and I want to start my investment for retirement. I want to invest 70 per cent of my investment in small cap mutual funds and 30 per cent in large cap mutual funds. I would like to start investing Rs 10,000 every month. Please suggest some good funds to start with. And, my aim is to create Rs 3 crore at the time of my retirement.
--Avik Saha

First, if you are totally new to mutual funds and investing, you should consult a mutual fund advisor before investing. New investors often need a lot of guidance and reassurance in the initial phase of their investment life.

Two, you should always pick mutual fund schemes based on your goals, horizon, and risk profile. For example, you should choose equity mutual fund schemes for long-term goals like retirement. Further, you should choose a category of scheme based on your risk profile. For example, if you are conservative investor, you should choose large cap mutual fund schemes. If you are an investor with a moderate risk appetite, you should invest mostly in multi cap mutual fund schemes. If you are an aggressive investor, you may opt for mid cap or small cap schemes.


Your portfolio has very high risk, as it has a very large exposure to small cap schemes. Around 30 per cent of exposure to large cap schemes may help to bring down the risk marginally. Make sure you are okay with the high risk and volatility associated with small cap schemes, and ready to invest regularly and hold on to your investments for a long period to maximise wealth.