A mid- & small-cap fund can give a steady portfolio the required push to earn higher returns…
20-Jul-2012 •Research Desk
I am 33 years old and have Rs 1,000 SIPs in HDFC Top 200, DSPBR Top 100 and ICICI Prudential Focused Bluechip Equity. My equity exposure looks very high and I am investing for a seven-year period for my child’s education. I plan to increase my investments with time. Should I change any of the schemes that I am investing in? -Sunil Fogaat
Your portfolio is tilted towards larger stocks and exposure to mid- and small-caps is less than 15 per cent. This will give it some amount of stability. You have also invested in good funds and are doing so systematically.
Since you are not investing huge amounts and you do have quite a few years to reach your goal, why don’t you consider substituting a large-cap fund with a mid and small cap one? No doubt it would be riskier but the potential for return is higher. Since your current mid- and small-cap exposure is really low, it would make sense to think along those lines. If you visit our website, you can select a well-rated fund from the ‘Equity: Mid & Small Cap’ category. If you are unwilling to take that risk, then select one from the ‘Equity: Multi Cap’ category.
Do check the performance of your funds periodically and initiate any change in fund selection if necessary.