Have I chosen the right mutual fund schemes?

Have I chosen the right mutual fund schemes?


I am under the assumption that mutual fund is a lot better and safe than private loans (lending money to strangers for some interest). I just did some basic research and came to know the jargons also invested in Mirae Asset Tax Save Fund (Direct – growth) as it has lower expense ratio and high ratings and good returns for past five years. Also, invested a little in other funds — Axis Focused 25 Fund, SBI Small Cap fund, Mirae Asset Emerging Bluechip Fund — All these investments are in direct, growth plans. I want to know whether the funds I have chosen are correct for my long term (may be 10 to 20 years).

—Sai Ram

You are currently investing in a tax saver scheme, focused multi cap scheme, small cap scheme, and large & mid cap scheme. All these schemes are top performers in their respective category. However, you need to find out whether they are ideal for you. We can’t comment about whether these schemes suit your investor profile since you have not shared your risk profile with us. Here are a few observations about your mutual fund portfolio. Most of your schemes have high risk: small cap scheme and large & mid cap scheme are recommended to investors with higher risk appetite. Even the focused multi cap scheme has more risk than a regular multi cap scheme. You should make sure that these schemes are in line with your risk profile.