Should I make changes to my mutual fund portfolio?

I am investing in the following mutual funds:
Aditya Birla Sun Life Tax Relief 96: Rs 5,000
HDFC Small Cap Fund: Rs 2,500
SBI Small Cap Fund: Rs 2500

I have a moderate risk-taking ability. Should I make any modifications to my profile to achieve maximum returns by investing Rs 10,000 every month? Also, please suggest me a mutual fund with high returns to invest a lumpsum for a year.
-Mahalakshmi

A moderate equity investor is supposed to invest mostly in multi cap mutual funds. The investor may also add large cap mutual funds to diversify and reduce the overall risk in the portfolio.

You are currently investing in a tax saving mutual fund scheme or ELSS and two small cap mutual funds. You may continue with your investments in the ELSS fund, if you want to save taxes under Section 80C. However, small cap mutual funds are not meant for moderate investor. They meant for aggressive investors with a very high appetite for risk and volatility. You must reconsider your investments in small cap schemes.


When you are investing for a year, your priority is to safeguard your capital. That means you have to invest the money in bank deposits and debt mutual funds like ultra short duration schemes. These investments will not offer you high returns. They will offer you modest returns. Do not expose your short-term investments to unnecessary risk for higher returns. You might end up losing your capital.