Mutual Funds Advice Please

Good afternoon everyone,

I'm planning to start the below SIPs from September. I'm 26 years old and I'm willing to take risks since my investment horizon is 10 years. Please let me know of your thoughts.
1. Reliance Tax Saver - 10k
2. UTI Transportation and Logistics - 4k
3. ICICI Prudential Value Discovery - 4k
4. Franklin Smaller Companies - 4k
5. Franklin Build India - 4k
6. Kotak Infrastructure and Economic Reform - 4k.
Total = 30k/pm.

Chose 5 and 6, because I feel infrastructure will get a big boost in the next 2/3 years. Please advise.

 

I am presently investing in Franklin smaller companies fund, dsp microscap fund, mirae emerging blue chip fund and HDFC mid cap fund. These are small and mid cap funds. In large cap companies I invest directly. If I were to buy multicap and large cap funds, I may have look to quantum long term and Birla front line fund also. As I don't need tax saving fund so don't track. This is for discussion only .,as I don't recommend any stock or mutual funds, so better take professional advice or take decision after proper study.

 

Where is question of taking risk if there is investment in six mutual fund? If this is meaning of taking risk than what is meaning of being conservative?

IMHO you are being extra conservative with so much diversification into Mutual Funds. Each MF has minimum 20 stocks. By selecting 6 funds you are investing indirectly into 120 stock assuming no repetition is there of stock.

IMHO even one diversified MF is sufficient. Max two MFs is good. Choose good Mid-cap fund from Franklin smaller companies fund, dsp microscap fund, mirae emerging blue chip fund and HDFC mid cap fund suggested by @kharb sir.

Instead of simply spraying funds to many MFs better is to spend time to study carefully and then make selection of one or two best funds.

 

Hi

I would suggest to avoid sectorial mutual funds. Find a midcap/microcap fund that has exposure to infra sector and that should do the job well. Too many mutual funds will have overlapping equity portfolio and returns will be the same or similarand that is not diversification.

Invest in 3 mutual funds which have diversification interms of underlying equity investments.

Cheers
G1

 

Did you look at https://www.smallcase.com/discover ?

 

Its good to have 3 to 4 funds max ...

From the list, my choices would be ...

1. Replace Reliance Tax Saver with Axis Long Term Equity (ELSS)
2. Remove it
3. ICICI Prudential Value Discovery
4. Franklin Smaller Companies
5. Remove it
6. Remove it

If at all you need one more can go for HDFC Balanced as the 4th one ... That would suffice as per my views ...