Can I continue with these mutual funds to create wealth?

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I started investing in Axis Bluechip Fund a year ago.

I started investing these funds recently:

Equity:

Axis Bluechip Fund

Para Parikh Long Term Equity Fund

Canara Robeco Equity Hybrid Fund

Motilal Oswal S&P 500 Index

Debt:

Kotak Dynamic Bond Fund

Axis Short Term Fund

Kotak Corporate Bond Fund

I am investing for wealth creation. I have moderate risk appetite. I may continue for long term.
I would like to get my funds reviewed and is it okay to continue with these schemes or should I make some changes?
Is it good to have Motilal Oswal Multi Asset Fund in my portfolio? Should I remove any fund from the current list?
--Rahul



You should always choose your mutual funds based on your goal, investment horizon, and risk profile. For example, if you are investing for long-term wealth creation, you can consider investing in equity mutual funds. Further, since you have a moderate risk profile, you can consider investing mostly in multi cap mutual funds. Do you want to diversify into other asset classes like debt, gold, etc to reduce the overall risk in the portfolio? Well, the percentage of allocation to the assets would depend on your return expectation from the portfolio.
  • 12.45%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.11 YearsTime taken to double money
  • 10.16%Annualized Return for 1 year
  • >3 years Suggested Investment Horizon
  • 8.7 YearsTime taken to double money


This is because mostly when you diversify your investments into safer options like debt, gold, etc, the overall return from the portfolio comes down. You should make sure that you can reach your goals comfortably with lower returns.

You are investing in good individual performers.

However, your equity mutual fund portfolio lacks focus. You are currently investing in a large cap scheme, multi cap scheme with international stocks, aggressive hybrid scheme, and international funds. As per your stated risk profile, you should invest mostly in a multi cap scheme like Parag Parikh Long Term Equity Fund. If you want to reduce the risk in your equity portfolio, you can also take a small exposure to a large cap scheme like Axis Bluechip Fund. Since you have investments in debt mutual funds, you do not need aggressive hybrid scheme in you portfolio. As for international funds, you should keep in mind that your already have some international stocks through your multi cap scheme. Do you want extra investments in US stocks? Remember, international funds are a good diversification tool, but they are unlikely to beat a developing market like India over a long period.

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If you re not sure about mutual fund and investing basics, you should seek the help of a mutual fund advisor.
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