I’m 26 and I’m investing ₹5,500 per thirty days in SIP within the following funds: Axis Flexi Cap – ₹1,500, Parag Parikh Flexi Cap – ₹1,000, Axis Bluechip- ₹1,000, Axis ESG – ₹1,000 and Nippon India Pharma Fund – ₹1,000. I’m an aggressive and high-risk investor and I’m in search of an investing horizon of 10-15 years. Am I heading in the right direction or ought to I spend money on different funds?
—Title withheld on request
An all-equity portfolio akin to yours is okay in case your funding time horizon is past 5-7 years. So, as you point out, in case you are investing for 10 or 15 years, such a portfolio could be high quality. Nonetheless, I see a must do some pruning in your portfolio. For one, a ₹5,500 portfolio doesn’t require 5 funds in it. Secondly, having thematic or sector-specific funds in a general-purpose long-term portfolio will not be a good suggestion. Such funds, particularly sector funds, require a eager understanding of the precise sector to allow well timed entry and exit into the funds.
These funds will let you do broad-based ‘performs’ on the sectors, and are usually not appropriate for generic asset-class publicity {that a} long-term portfolio seeks to supply.
So, on your portfolio, I might recommend shifting out of each such funds and rising your allocation to the Parag Parikh fund and the Bluechip fund.
In future, do you have to enhance your SIP (systematic funding plan) quantity, you’ll have room so as to add a mid-cap fund or two to additional diversify your holdings.
Srikanth Meenakshi is founder, Primeinvestor.in.
Supply: Live Mint