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Mutual Fund Corner: Do I need to modify my mutual fund portfolio to create wealth?

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Want to invest in mutual funds but don’t know how to go about it? Get all your mutual fund related queries answered by our expert, Feroze Azeez, deputy chief executive officer, Anand Rathi Wealth Management, on our show Mutual Fund Corner.

Mutual Fund Corner: Do I need to modify my mutual fund portfolio to create wealth?

Want to invest in mutual funds but don’t know how to go about it?

Get all your mutual fund related queries answered by our expert, Feroze Azeez, deputy chief executive officer, Anand Rathi Wealth Management, on our show Mutual Fund Corner.


Q: 65-year-old VS Rao writes us from Bengaluru. Invested in Tata Multicap Fund Regular Plan Growth Opportunities (Purchased 1000@Rs 10), Sundaram Mutual Fund - Service Fund Regular Plan Growth Opportunities (Purchased 1000@Rs 10) and HDFC Mutual Fund - Balance Advantage Fund Regular Plan Growth Opportunities with monthly dividend payout (Purchased 16,223). Please advise can I continue in the same or can I split into other short-term gain funds if any. Please advise whether can I hold or to diversify the funds for any beneficial funds etc.

A: You will have to redeem from all the three funds. Looking at your age, we would suggest you to allocate at least 40 percent of your portfolio towards debt and 60 percent to equity. Tata Multi Cap Fund has been recently launched in August. It is always better to invest in schemes which have been in existence for at least 3-5 years. Instead, you can invest in Mirae Asset India Equity Fund.

Sundaram Service Fund RGPL is a thematic fund. Thematic funds are concentrated funds with exposure towards one particular sector only. This makes the fund risky in volatile markets. Hence, it is always advisable to invest in diversified equity funds. You can invest in Reliance Large Cap Fund.

HDFC Balanced Advantage Fund is a balanced fund with exposure towards both equity and debt. We recommend our investors to keep their equity and debt investments separate. A combination of equity and debt generates lower returns when compared to two separate investments. We would suggest you to invest in a debt fund – Reliance Credit Risk Fund.

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Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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