Should I continue with my mutual fund investments?

I am 23 years old. I have been investing in mutual funds for the past 1.5 years. My monthly SIP of 17,500 are as follows:

• Axis Long Term Equity Fund: Rs 5,000
• DSP Mid Cap Fund: Rs 3,000
• Axis Small Cap Fund: Rs 2,000
• Parag Parikh Flexi Cap Fund: Rs 5,000
• Mirae Asset Emerging Bluechip Fund: Rs 2,500

I have also invested a lump sum amount of Rs 25,000 in ICICI Value Discovery Fund and Rs 10,000 in Aditya Birla Balanced Advantage Fund.

I have a moderate risk profile and plan to buy a house in the next ten years.

Should I continue with my investments?

-Utsav

There is no reason to discontinue your equity mutual fund investments that you plan to use for a long term goal. However, you need to do certain things to ensure that you meet your goal without fail.

First, find out your risk profile and make sure your portfolio matches it. You say you have a moderate risk profile, but you are investing in a large & mid cap scheme, mid cap scheme and small cap scheme. These schemes have higher risk and they call for a longer investment period of seven to 10 years. They are not typically recommended to moderate investors. So, find out your risk profile by taking an online quiz and ensure that your schemes match your risk profile.


Two, try to quantify your goal. For example, find out how much a house will cost in your locality. Also, find out how much the prices are likely to go up in your locality. Once you know the target amount it will be easier for you to calculate how much you need to invest to make that corpus. This approach will help you to achieve your goals without fail.