Portfolios are not static entities and may change after periodic reviews1 min read . Updated: 11 Mar 2020, 08:49 PM IST
Over the course of the next 20 years, this portfolio will likely undergo several changes during your periodic reviews
I invest ₹90,000 each month, divided equally between the following funds—Mirae Asset Emerging Bluechip, Kotak Standard Multicap, Invesco India Contra, SBI Small Cap and Franklin India Feeder-Franklin US Opportunities Fund. I started my systematic investment plans (SIPs) two months ago and my investment period is 20 years, but I have a few doubts. Should I stop my SIPs in three schemes and move the funds to one, or should I split SIPs into four schemes by adding Axis Small Cap? As markets move in cycles, I have not selected any pure large-cap or mid-cap fund. My focus is more on multi-cap funds, but I am aware of concentration risk. Should I add a focused fund? Mirae and Axis have launched new funds in the focused and multi-cap category. Though these are new, they have experienced managers at the helm. Which focused fund should I consider?
From your query, we surmise that you are investing a significant amount of money in a very aggressive, long-term portfolio. Also, since you have recently begun investing, it is natural to get anxious about getting things right and building a perfect portfolio.
However, you should realize that portfolios are not static entities, and over the course of the next 20 years, this portfolio will likely undergo several changes during your periodic reviews. That said, you have a good portfolio at present, with funds that are well-diversified and that have a good track record.
Coming to your specific questions, you could go ahead and add a focused fund—Axis Focussed 25 would be a good choice. Stay away from new funds until they prove themselves in the market. There are enough proven funds in the space, so you don’t need to take on more risk by adding unproven funds to your portfolio (regardless of the fund manager).
Overall, your portfolio has three diversified funds, a small-cap fund, and an overseas fund. In your next review, you may consider adding a large-cap fund to the mix in order to take advantage of large-cap run-ups like we saw over the past year.
Srikanth Meenakshi is co-founder, PrimeInvestor.in. Queries and views at email@example.com