1. Parag Parikh Flexi Cap Fund
2. Motilal Oswal S&P 500 Index Fund
3. UTI Nifty Index Fund
4. Canara Robeco Bluechip Equity Fund
5. HDFC Small Cap Fund
6. Axis Small Cap Fund
I am also planning to invest in HDFC Sensex Fund. Should I do it?
— Sagar Pujar
We always ask ourselves readers to go for goal-based investing. Also, they should choose their investments, including mutual funds, carefully based on their investment objectives (goals) and risk profile. For example, if you are investing for retirement, and you are a moderate investor, you should invest mostly in flexi cap schemes. If you want to reduce risk, you can invest a small part of your portfolio in large cap mutual funds.
Now, coming to your first question, should you rebalance your investments, we can’t answer that question because you have not mentioned when you started investing or why you chose these investments. Unless you are investing a very large amount of money, you don’t need to invest in six or even schemes. You need to rebalance your portfolio once a year, if you find it has moved away from your original allocation.
Many investment investment experts believe that activity-managed large cap schemes are unlikely to beat their benchmark returns. That is the reason why many investors are opting for index schemes. If you subscribe to this view, you can invest in index-based schemes. But before that you should take a relook at your portfolio. Take the help of a mutual fund advisor if you are not clear about basics or you need help in choosing schemes.
