Should I invest in L&T Emerging Businesses Fund?

I have three SIPs since the last one year. I am a moderate risk-taker. My investments are in: SBI Bluechip Fund (Rs 3,000), Kotak Select Focus Fund (Rs 2,000), ICICI Prudential Blue chip (Rs 2,000). Is my portfolio good? I will invest for eight years.

Also, I want to invest in L&T Emerging Businesses Fund (Rs 1,500). Is it a good choice?
--Rahul Banerjee

We always ask investors to choose their mutual fund schemes based on their goal, investment period, and risk profile. Since you have a moderate risk profile, you should invest predominantly in multicap schemes. If you want to diversify your investments and reduce the overall risk in the portfolio, you may also invest a small part of your total portfolio in largecap schemes.

You are currently investing Rs 5,000 in two largecap schemes, and Rs 2,000 in a multicap scheme. Ideally you should be investing more in multicap schemes.


L&T Emerging Businesses Fund is a smallcap scheme. Smallcap schemes are meant for aggressive investors with a capacity to take very high risk and an ability to withstand volatility. Smallcap schemes are not meant for investors with moderate risk appetite.