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, Manoj Nagpal, managing director and chief executive officer, Outlook Asia Capital, on our show Mutual Fund Corner.
Q: 79-year-old PK Garg writes us from Hyderabad. I am investing in the following funds: Axis Focused 25 G (Rs 2.9 lakh), Franklin India Prima Fund G (Rs 1.9 lakh), HDFC Capital Builder G (Rs 8.8 lakh), HDFC Mid Cap G (Rs 7.2 lakh), Mirae Assent India Equity G (Rs 5.0 lakh), Sundaram Mid Cap G (Rs 8.3 lakh) and Sundaram Small Cap G (Rs 2.7 lakh). Kindly review my folio and suggest further consolidation. I have no goal and defined end use. I have no liability and pension is enough for current expenses.
A: Age is one parameter of risk. Even if you have a long term and high risk appetite, your portfolio is too diversified with 11 funds. Ideally prune it to only 3-5 funds. Given your profile, would advise to consolidate the portfolio in to Franklin Prima, HDFC Capital Builder, ICICI Pru Top 100 and Mirae India Equity. Such a construct will reduce risk and still not give up on wealth creation potential.
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