Can I continue to invest in these mutual funds?


I am a new investor. I started investing recently and this is my portfolio:
Axis Bluechip Fund: Rs 50,000
Quant Small Cap Fund: Rs 25,000
Parag Parikh Flexi Cap Fund: Rs 25,000
Edelweiss Recently Listed IPO Fund: Rs 2,000 (SIP)
TATA Digital India Fund: 2,000 (SIP)

My horizon is 7-10 years and I am 25 years old, and able to take risks. Is this a good way to proceed or should I make some changes?
-–Khalid Shaikh

You have invested in a large cap scheme, small cap scheme, and flexi cap scheme. A large cap scheme is recommended to conservative equity investors, whereas flexi cap schemes are recommended to moderate investors. Small cap schemes are recommended to investors with large risk appetite and ability to tolerate volatility. You are also investing in an IPO fund and IT fund. These two are thematic schemes, and they are highly risky. They are typically recommended to seasoned investors with a very large risk appetite. If you are fine with the risk element in these schemes, you may continue with your investments.

We typically ask new and inexperienced investors to stick to relatively safer options like large cap and flexi cap. We ask them to avoid risky options. We have noticed that new and inexperienced investors often get extremely nervous in a turbulent market phase. So, it is better to take risks only after one has gained enough experience and knowledge.

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