Should I invest more in smallcap schemes?
If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
By ET Online |
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I would like to invest Rs 50,000 via SIPs every month for five to 10 years. These are the schemes I am currently investing in (for a little over two years):
ELSS
Axis Long Term Equity Fund: Rs 2,500
Reliance Tax Saver (ELSS) Fund:Rs 2,500
Hybrid schemes:
ICICI Prudential Balanced Fund: Rs 5,000
Mirae Asset Prudence Fund:Rs 3,000
Multicap scheme
Franklin India High Growth Companies Fund:Rs 6,000
Largecap and midcap schemes:
ICICI Prudential Focused Bluechip Fund: Rs 5,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000
Smallcap schemes:
Franklin India Smaller Companies Fund: Rs 10,000
DSP BlackRock Micro Cap Fund: Rs 3,000
Am I investing right? Is my portfolio diversified? Should I invest more in smallcap schemes?
-- Kannan AnandaKrishnan
Deepesh Mehta, Founder, Grow Wealth, responds:
If you invest in these many mutual fund schemes, you will not be able to achieve the optimal rate of return. Trim down the number of schemes in your portfolio to four or five and invest in only one scheme under each category. Also, you have selected the above schemes based on their past performances. This is not the only way to select mutual fund schemes for your portfolio.
ELSS
Axis Long Term Equity Fund: Rs 2,500
Reliance Tax Saver (ELSS) Fund:Rs 2,500
Hybrid schemes:
ICICI Prudential Balanced Fund: Rs 5,000
Mirae Asset Prudence Fund:Rs 3,000
Multicap scheme
Franklin India High Growth Companies Fund:Rs 6,000
Largecap and midcap schemes:
ICICI Prudential Focused Bluechip Fund: Rs 5,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000
Smallcap schemes:
Franklin India Smaller Companies Fund: Rs 10,000
DSP BlackRock Micro Cap Fund: Rs 3,000
Am I investing right? Is my portfolio diversified? Should I invest more in smallcap schemes?
-- Kannan AnandaKrishnan
Deepesh Mehta, Founder, Grow Wealth, responds:
If you invest in these many mutual fund schemes, you will not be able to achieve the optimal rate of return. Trim down the number of schemes in your portfolio to four or five and invest in only one scheme under each category. Also, you have selected the above schemes based on their past performances. This is not the only way to select mutual fund schemes for your portfolio.
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