I am 36 and my monthly income is Rs 50,000. I want to invest Rs 10,000 in mutual funds through SIPs and have selected HDFC Equity, HDFC Top 200, IDFC Premier Equity, BSL Dividend Yield Plus and ICICI Prudential Discovery Fund. I am new to mutual fund investing.
- Rama Chandra Sethi
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You have selected good funds to build a portfolio. However, with three mid- and small-cap funds in the portfolio, there is multiplicity of the idea, which does not add to portfolio diversification which is necessary for long-term wealth creation. You can consider reducing the mid- and small-cap holding and adding a large-cap fund such as DSPBR Top 100 Equity or Franklin India Bluechip to add stability to the portfolio and diversification. Continue investing regularly in the selected funds and monitor its progress regularly.
This article was originally published on June 17, 2011.
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