Investors often invest in a number of mutual funds at the same time. Later suffered from suspicion.
Interest rates have plummeted on any permanent savings scheme, be it banks or post offices. On the other hand, although there is a possibility of a good return in the stock market, the risk is strong. But there are plans to raise a large fund for the future. In this situation, investors are relying on mutual funds.
However, investors often invest in many mutual funds at once. Later suffered from suspicion. It seems that one fund is overlapping another. Shivam Sharma is in such a predicament. “I am 32 years old,” he said. I invest Rs 22,000 per month through SIPs and other mutual funds. Besides, monthly installment of Rs. 2000 has to be paid in NPS. There are long term investment plans. I like to take moderate risks’.
Shivam also gave details of the mutual funds invested. He said, “Axis Blue Chip Fund has been paying Rs. 6,000 per month for the last 1 year, Axis Mid Cap Fund has been paying Rs. Rs.2000 / – per month, Rs.2000 / – per month for two months in Tata Digital India Fund, Rs2000 / – in Tata Balance Advantage Fund, Rs2000 / – per month for 3 months in Parag Parikh Flexi Fund, Rs2000 / – per month for two months in SBI Contra Fund, Mahindra Manual I am investing Rs.1000 / – per month in the fund for two months and Rs.1000 / – per month for two months in Motilal Oswal Nasdaq 100FOF.
Shivam’s question, ‘I think we have invested in a lot of funds together. One fund is overlapping another. So I am asking for advice on how to revise the portfolio. Tell us which funds we will continue to invest in, which ones we will remove and in which funds we will invest.
Answering this question, experts say, ‘You are investing Rs 22,000 per month in 10 schemes. You seem to have chosen the best funds from each category of choice. However, as we have repeatedly said, investing too little in too many schemes, the benefits of diversification or the maximum return, are not good. However, there is an opportunity to organize the portfolio. The scheme should be chosen based on how much risk the investor can take and what is the purpose or goal of his investment. You have invested in the long run and prefer to take medium risk. In this case you can invest in one or two good flexi cap mutual funds. These schemes invest across market capital and sectors. As a result, it will give better variety ‘.
At the same time, experts say, if you want to get income tax exemption under section 80C, you should continue to invest in Mira Asset Tax Saver Fund. However, if you do not understand the basics of mutual funds, you should seek the help of a reliable mutual fund advisor. It is better not to experiment with money. You need to acquire knowledge and experience before managing your own investment.