I’ve an aggressive risk profile. I’ve selected the following funds for SIP investments: SBI Magnum Emerging Businesses, Reliance Pharma, IDFC Premier Equity and ICICI Prudential Discovery. Is this a reasonable choice? -Madhur Kalra
You’ve done an excellent job of picking the right funds. But we would suggest you to drop the sector fund – the Reliance Pharma fund. While pharma funds are doing well, and this fund in particularly has done really well, they are subject to cyclicality. Investing in diversified funds would be more prudent as they will be able to navigate through the volatility because their portfolios will not be constrained.