In this episode of Mutual Fund Corner, Dilshad Billimoria of Dilzer Consultants, and Shweta Rajani of Anand Rathi Wealth answer viewers’ mutual fund queries.
On investing in schemes like HDFC Nifty 50 ETF and ICICI PRU Bank Nifty ETF, Billimoria said, “The asset allocation and the risk profile of the investor is very important before one can suggest the actual scheme names. So while investor has suggested both index based funds, the Nifty and the Bank Index, I think that is a good allocation.”
She added, “However, one must look at how much equity allocation overall they need to have in the portfolio, and then further break it down into equity index equity, large-cap, mid-cap, small-cap, and that is a result of their risk profile. So both these funds are index based, which means that the expense ratios are much lower.”
On investing Rs 8 lakh in mutual fund, Rajani said, “If you are looking at allocating this money for the equity portion of your portfolio, then I would suggest a basket of five funds in which you can invest — HDFC Flexi cap, SBI focused equity, Franklin blue chip fund, and Invesco India multicap fund and an SBI contract fund. An equal allocation would give you consistency in return.”
Watch video for more.