Should I invest in mid cap fund for good returns for a short term?

I am investing in mutual funds since 2018. Day by day I'm liking it and reading various news and trying to understand about it.

My portfolio includes:
(1) Mirae Asset Emerging BlueChip - G (SIP of Rs 1000 per month since Jan 2018)
(2) Principal Emerging Emerging BlueChip (Rs 30,000 lump sum since Feb 2018)
(3) Tata India Consumer fund (Rs 45,000 lump sum since Dec 2017)
(4) L&T Emerging BlueChip (Rs 10,000 lump sum since 2017 Oct)

- I want to stay invested for the long run and also looking for good returns in the short period as well. Kindly suggest where I should invest in the long run and in the short run as well.

- Can a mid cap fund be opted for good returns for a short period with SIP/ lump sum ?

--- Rajdip Gupta

Vishal Dhawan, founder, PlanAhead Wealth Management, a financial planning firm, based in Mumbai, responds:

Midcaps are generally more volatile than the blue chips and hence better suited for wealth creation in the long run. Considering the fact that mid-caps have already run up significantly, we don’t suggest investing in lump sum into midcaps at the current point.

Further looking at your portfolio, effective allocation to Mid caps is already there than the ideal allocation to mid caps. Therefore we would recommend you to avoid incremental allocation to mid caps, rather to look towards index and small caps towards building your wealth, along with an overseas fund.