Should I add multi cap or aggressive hybrid fund to my mutual fund portfolio?

I am 33 years old. I have recently started investing Rs 20,000 in the following mutual funds directly:
Axis Bluechip Fund: Rs 8,000
Axis Midcap Fund: Rs 2,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000
Kotak Emerging Equity Scheme: Rs 3,000
HDFC Small Cap Fund: Rs 2,000

Earlier, I was investing in a different portfolio of regular plans.

I have an investment horizon of 15 to 20 years. I am looking to create wealth and build a retirement corpus. I can increase my investment every year by 10 per cent.

Do I have the right asset allocation across large cap, mid cap and small cap schemes? Should I add a multi cap or an aggressive hybrid fund to my portfolio? Or should I stop investing in any of these schemes?
--Ankur Jain

MS Shabbir, founder and managing director of SenSage Financial Services, responds:

You should invest in only one mid cap fund. That is, Axis Midcap Fund. Kotak Emerging Equity Scheme has not been performing for the last three years. You may consider to switch to Kotak Standard Multicap Fund. Similarly, Axis Small Cap Fund has consistently outperformed HDFC Small Cap.

There is no perceived risk in holding different funds with a single AMC as long as the schemes are performing. In fact, it is more convenient to make switches and rebalance the portfolio whenever required.


You may continue to invest in direct plans but don’t forget to get your portfolio reviewed periodically by experts. Also, rebalance your portfolio on a yearly basis.