Mutual fund query

Hello,

I want to invest INR 1 Lac every month. I am investing for long term and I have good risk tolerance.

I want to consolidate/improve my investments as I have invested in many schemes and hence want to reduce the number of funds.

At present, I am investing INR 37000 per month since 1.5 years in the below schemes:

  1. Franklin India Smaller companies fund: 7000/-
  2. Reliance Small Cap fund: 6000/-
  3. Mirae Asset Blue Chip fund: 7000/-
  4. L&T India Value fund: 5000/-
  5. ICICI Value Discovery fund: 3500/-
  6. ICICI dynamic fund: 3500/-
  7. Aditya Birla Pure Value fund: 5000/-

Any suggestions would be of great help. Thank you.

Hi @antrade First of all, I would like to make a disclaimer that I’m not a registered financial advisor. Hence, I’ll only present my personal opinions here and it should not be considered as a financial advice or recommendation.

Now, I can see what you’re trying to do. By investing in multiple mutual funds, you’re planning to diversify your portfolio and minimize the risk.

However, mutual funds are themselves a diversified investment. I mean, if you check the portfolio of most of these funds, they will have at least 40 stocks. If you are holding 7 kinds of mutual funds, overall you’ll have over +280 stocks in your portfolio. So, do not diversify which is already diversified a lot. Find 3-4 best performing mutual funds from your portfolio and invest in them. As you’ve been investing in these stocks for over 1.5 years, you might have a good idea by now that which mutual fund is less volatile, have a better portfolio and capable of giving good returns.

Further, it’s good that you are investing in different themes. Small cap, Blue chips etc. But again, find the best one in each theme and invest in that. For example, you’ve invested in two mutual funds with the same theme i.e. small caps. (Franklin India Smaller companies fund, Reliance Small Cap fund). Here, you may want to keep just one.

(Btw, I was going through the portfolio of Franklin India Smaller companies fund and found something very interesting. They have invested in HDFC Bank, Infosys, Voltas, Yes Bank, Berger Paints etc. However, these companies are not small/mid caps. Please go through their portfolio once again and make sure that your money is invested in your desired theme only. Source: Money control)

Overall, I think you should check the holdings of these mutual funds, past performance, CRISIL RANK and other details like entry/exit load, etc to decide which one to remain invested. You can find these pieces of information on money control, value research of different financial websites or ask for the help of an advisor. Definitely, it will take some time and effort. But it’s the correct approach.

I hope it helps. Cheers.

As you are investing for long term , you should invest in equity market. Some of the funds are:
i) https://www.rupeevest.com/Mutual-Funds-India/1273
ii) https://www.rupeevest.com/Mutual-Funds-India/523
iii) https://www.rupeevest.com/Mutual-Funds-India/4453
iv) https://www.rupeevest.com/Mutual-Funds-India/22139
v) https://www.rupeevest.com/Mutual-Funds-India/927

Find out more information on https://www.rupeevest.com/Mutual-Funds-India/Best-Mutual-Funds

Hi,
I think you should go for the latest performing fund in the market. And if you feel there are any switching requirements with your investment so switch your fund or start with a new performing investment.
Have a look at top mutual funds:

Best Large-Cap Equity Funds 2018-2019.

  1. Axis Bluechip Fund
  2. ICICI Prudential Bluechip Fund
  3. Sundaram Select Focus Fund

Best Large & Mid Cap Equity Funds 2018-2019.

  1. Mirae Asset Emerging Bluechip fund.
  2. Principal Emerging Bluechip Fund.
  3. Sundram Large & Mid Cap Funds.

Best Multi-Cap Equity Funds 2018-2019.

  1. SBI Focused Equity Fund.
  2. Mirae Asset India Equity Fund.
  3. Kotak Standard Multicap Fund.
  4. SBI Magnum Multicap Fund.

You can read more funds: https://www.wealthbhai.com/blog/best-funds-to-build-your-portfolio/