Should I invest in ABSL Small & Midcap Fund?

I am 31 years old. My risk profile is moderate. I am currently investing Rs 1,500 in Mirae Asset Tax Saver Fund - Reg (G), Rs 1,500 in Motilal Oswal Long Term Equity Fund - Reg(G), Rs 2,000 in L&T Infrastructure Fund - Direct (G) and Rs 2,000 in ABSL Top 100 Fund - Direct (G). Further, I want to invest Rs 2,000 in ABSL Small & Midcap Fund – Direct (G). Please review my profile and suggest.
--Vijay Malik

A few observations. One, if your risk profile is moderate, you should be investing mostly in multicap schemes. You may also invest a small part of your corpus in a largecap scheme to diversify your portfolio. Currently, you are investing in two tax-saving schemes or ELSSs (you may consider them as multicap schemes), one infrastructure fund, and a largecap scheme.

Your ELSS funds are relatively new. They don’t have a long-term performance record. We do not recommend sector or thematic schemes like infrastructure as we believe they can be riskier for investors with moderate risk appetite.


You should reconsider your decision to invest in a small and midcap scheme as it is a risky choice. Small and midcap schemes are suitable to aggressive investors. They are not recommended to investors with moderate risk appetite.

As said before, you should invest predominantly in multicap schemes and have a small exposure to a largecap scheme. Do not add more than four schemes to your mutual fund portfolio.