I am 36 years and have been investing in mutual fund SIPs since November 2010 for the next 15-20 years. I am investing Rs 2,000 in Reliance Banking, ICICI Prudential Discovery, Sundaram Select Midcap and HDFC Top 200; I am also investing Rs 1,000 in Reliance Regular Savings Equity and Reliance Growth. Kindly analyse my fund selection and suggest changes if necessary.
— Raj Kumar Rakhra
A portfolio of six funds comprising three mid- and small-cap funds, a multi-cap fund and a sector fund is risky. Moreover, you do not get diversity with three mid-cap funds, even if you want an aggressive portfolio. Exit Reliance Growth which is losing on performance and add a large-cap fund such as DSPBR Top 100 Equity or ICICI Prudential Focused Bluechip fund instead. Also ensure that your allocation to the sector fund is not too high.
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This article was originally published on September 21, 2011.
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