Navi Large & Midcap Fund: 21%
Tata Digital India Fund: 20%
Quant Small Cap Fund: 15%
PGIM India Midcap Opportunities Fund: 14%
Aditya Birla Sun Life Nifty Small cap 50 index Fund: 5%
Navi Nifty next 50 index Fund: 4%
ICICI Prudential US Bluechip Equity Fund: 8%
Axis Flexi Cap Fund: 6%
Mirae asset Focussed fund: 7 %
I am planning to get rid of small cap 50 index, axis flexicap, and tata digital india fund. But I can’t find the right strategy to exit as I am sitting on losses.
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You should seek the help of a mutual fund advisor or financial planner. We believe that investors should start taking care of their investments only after gaining enough knowledge and experience. Otherwise, they make mistakes and lose an opportunity to create wealth.
We ask our readers with a moderate risk appetite to invest mostly in flexi cap funds. These funds invest across market capitalisations and sectors and themes. They offer a diversified portfolio to invest and create wealth over a long period. Your mutual fund portfolio lacks focus. You are investing in a large & mid cap fund, IT fund, small cap fund, mid cap fund, small cap index fund, large cap index fund, international fund, flexi cap fund, and focused fund. Investing in every available mutual fund category will not allow you to diversify your portfolio or maximise returns. Often such mindless diversification dilutes your returns. Also, an investor with a moderate risk profile should not invest in large & mid cap schemes, IT funds, mid cap funds, small cap funds, among others. Clearly, you should seek the help of an advisor.
Here are some pointers. One, invest mostly in flexi cap funds. Two, if you want to take more risk, you can invest a small percent in risky options like mid cap, small cap, etc. However, follow a strict asset allocation strategy and remember to rebalance your portfolio every year. Limit your investments to four schemes. Too many schemes often result in over-diversification and duplication of portfolio.
