I have the following SIPs currently:
Invesco India Contra Fund: Rs 500
SBI Magnum Multicap Fund: Rs 500
Mirrae Asset Emerging Bluechip Fund: Rs 1,000
Tata Equity P/E Fund: Rs 1,000
I am also planning to start the following SIPs this month:
Kotak Standard Multicap Fund: Rs 1,000
Kotak Nifty ETF Fund: Rs 2,000
I will also start SIP of extra Rs 4,000 within a year. I have a long term goal (15-18 years) for my child’s education. My target is 12-14 per cent return.
Please comment on my current portfolio and give me a suggestion for Rs 4,000 SIP. I am ready to take moderate risk.
You are currently investing Rs 3,000 in four mutual fund schemes. You have chosen two value-oriented schemes, a multi cap scheme, and a large & mid cap scheme. This is not a great strategy. You should have invested the money in a multi cap mutual fund scheme like SBI Multicap Fund. Also, large & mid cap scheme like Mirae Asset Emerging Bluehcip Fund is not meant for moderate investors; it carries higher risk.
It is also not clear why you want to invest in a large cap ETF.
We believe you should seek the help of a mutual fund advisor with your investments. Investing in too many schemes would not maximise returns or reduce risk. On the contrary, it would result in over-diversification and drag the overall returns from your portfolio.
As an equity investor with a moderate risk appetite, you should invest mostly in multi cap schemes. If you want to diversify your portfolio to reduce the overall risk, you may also invest a little in large cap mutual fund schemes. Here are some useful links