cnbc-voice In ‘Your Money’ personal finance show, Rajendra Kumar Nayak from Odisha asked if he does a monthly SIP of Rs 28,000. His portfolio value is Rs 9 lakh. The target is to raise Rs 1 crore in 10 years. Rajendra Nayak’s portfolio includes schemes like Nippon India Small Cap, HDFC ELSS Tax Saver, HDFC Mid Cap Options, ABSL PSU Equity, HDFC Flexi Cap Fund, Quant Infrastructure, ICICI Pru Innovation, Franklin India ELSS and HDFC Dividend Yield. Rajendra Kumar’s question is whether his fund selection is right?
Sameer Shah, head of online business of Axis Securities, said that this portfolio can generate a corpus of Rs 3.5 crore in 15 years at the rate of 12 percent return. There are more funds in the portfolio. Reduce these. 40 percent investment is in a single AMC. For diversification, invest only 20 percent in one AMC. Investing in different AMCs reduces risk. Replace HDFC Mid Cap with MO Mid Cap. Merge Quant Infra with HDFC Flexi Cap.Replace ABSL PSU with ICICI Bluechip. Replace ICICI Innovation with ICICI Bluechip.
Advice to exit these funds
Sameer Shah advises Rajendra Kumar to exit HDFC Mid Cap Fund, Quant Infrastructure, ABSL PSU Equity and ICICI Pru Innovation Fund.
Investment advice in these funds
Sameer Shah advises Rajendra Kumar to invest in Motilal Oswal Mid Cap and ICICI Pru Bluechip Fund.
Market views: Indications of continued sluggishness in the short term market, market direction will become clear only if Nifty breaks the range of 23650-23850.
Investors should keep in mind that they should never invest their entire investment in any one asset. That is, to reduce risk, diversify your investment across multiple asset classes. There are many asset classes for investing in MF. Like equity or debt fund or hybrid category. Everyone’s risk and wealth creation capabilities are also different. If you have not invested money in this scheme yet, but are now thinking about it, then you must understand the difference between debt, equity and hybrid funds, only after that decide which type of fund you should invest in. Fund has to be selected.