Should I change my mutual fund portfolio?
I’m looking to invest for the long term, around 10-15 years. My goal is to buy a house and save money. I started with a moderate risk profile, but can now invest in a slightly higher risk profile.
My portfolio looks like this:
- L&T tax saver: Rs 2,000
- Franklin Tax Saver: Rs 1,500
- Tata tax saver: Rs 2,000
- Aditya tax saver: Rs 2,000
- Tax dependency: Rs 2,000
- Tax Saver Axis: Rs 2,000
- Mirae Tax Saver: Rs 2,000
- DSP Tax Saver: Rs 2,000
- Reliance Pharma: Rs 2,000
- Tata Digital Fund: Rs 3,000
- ICICI Technology: Rs 3,000
- Focus 25 axis: Rs 2,000
- Bluechip axis: Rs 2,000
- Small Cap Axis: Rs 2,000
- Discovery of ICICI value: Rs 1,500
- Franklin Equity Hybrid: Rs 1,500
- ICICI balance: Rs 3,000
- HDFC Hybrid Equity: Rs 2,000
Since I can now invest in higher risk funds, do you have any suggestions on which fund I can choose or changes I should make to my portfolio?
You are investing in too many plans. In fact, you invest in eight tax-saving schemes. Apart from this, you also invest in 10 other schemes. Investing a small amount in too many plans will not help you diversify your portfolio. This often results in overdiversification and duplication of the portfolio.
You don’t need to invest in more than three or four plans, including a tax-saving plan.
First, take an online quiz to find out your risk profile. An increase in income alone will not increase your risk tolerance. You will also need to include your mental makeup. Many high-income people can’t stand the idea of risky investments.
Once you know your risk profile, make sure you have a portfolio that matches your risk profile. If you don’t have a deep understanding of mutual funds, seek the advice of a trusted advisor. Ask your friends and colleagues for reference.