I'm 35 years old and have been investing in equities since the last two and a half years. With a horizon of 5-10 years, I want to increase my investment by Rs. 40,000 per month. Which categories of mutual funds should I choose and what should be the proportion of each category in my portfolio?
The previous two and a half years were very eventful, one has seen both a rising as well as a declining market, this experience of riding a full market cycle is very important for every investor. So I would say a first-hand experience of these last two and a half years is good enough for somebody to get an all equity exposure. If you feel that you are ready for the same then you can invest Rs. 40,000 equally in two multicap funds, maybe invest in one value-oriented and one growth-oriented fund. The investment proportion can also be a 40:60 ratio between one value-oriented and a growth-oriented multicap fund respectively. To get adequate diversification, just make sure that the two funds you are choosing are not from the same fund house. This low maintenance portfolio will get you an exposure to different styles and capitalisation.