Mutual funds can be used to create different portfolios
It is not uncommon for a new investor to get carried away and choose to invest in several schemes. If one follows the approach of deciding on asset allocation first, followed by fund category selection, and then finally fund selection, this situation can be avoided
I am 30 years old and I recently started investing in mutual funds. In my initial excitement, I invested in many schemes. I want to rejig my portfolio now. I can invest up to ₹ 20,000 a month in up to five schemes. I have a moderate to aggressive risk profile as I have no major commitments for the next three years. I have monthly investments of ₹ 3,000 each in HDFC Balanced Fund, Kotak Select Focus Fund and Tata Tax Savings Fund; ₹ 2,000 each in Mirae Asset Emerging Blue chip and Reliance Small Cap Fund; ₹ 1,000 in L&T Infra Fund; and ₹ 1,100 in Tata Equity P/E Fund. Which schemes should I continue?