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.
Want to invest in mutual funds but don’t know how to go about it?
Recommended ArticlesView All
China COVID protest: Xi Jinping can't blame the protesters — the world will be watching
IST9 Min(s) Read
Here’s why 2022 has been a very different year for two of India’s biggest AC makers
IST5 Min(s) Read
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: I am a long term investor and currently investing in SIP DSP Midcap, DSP Tiger, Invesco India Growth Opportunities, ICICI Bluechip, Motilal 35, Parag Parikh, Reliance Small Cap, SBI Small Cap, SBI Consumption and Tata Digital India. Roughly I invested around Rs 20,000 a month and I hold HDFC Equity Savings, L&T Emerging Businesses, Mirae Emerging Bluechip and two new fund offers. I would like your advise if I should change, asks Karan Ravi.
A: You have almost 15 funds in your portfolio spread across the market capitalisation curve, sectoral orientation and some geographic diversification through Parag Parikh Long Term Equity. And a bit of debt also through HDFC Equity Savings Fund. Such a portfolio construction is a bit of a case of over-diversification.
You would be holding around 300-320 unique underlying stocks in the underlying portfolio. This doesn’t add value to the wealth creation process. Actually, you may just be diminishing value with such a large basket of funds.
I don’t think, ideally there should be more 4-5 mutual funds in a portfolio. So four steps I would recommend to you to consider:
These four steps will help you run a more effective portfolio.
Click here to watch the full episode of Mutual Fund Corner
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.
First Published: IST