Will these mutual funds help me to create maximum wealth in 15 years?

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I am 32 years old. I have a medium risk appetite. I want to create maximum wealth by investing Rs 20,000 per month for a period of 15 years. I also invest a lumpsum whenever I find an opportunity in the market.

I am investing in the following mutual funds:

Mirae Asset Emerging Bluechip Fund (Direct -Growth): Rs 3,000

SBI Small Cap Fund (Direct -growth): Rs 3,000

UTI Core Equity Fund (Direct- Growth): Rs 500

Tata Digital India Fund (Direct- Growth): Rs 500

HDFC Mid-Cap Opportunities Fund (Direct- Growth): Rs 1,000

ICICI Prudential Bluechip Fund (Direct- Growth): Rs 1,000

Kotak Standard Multicap Fund (Direct – Growth): Rs 3,000

Axis Focused 25 Fund (Direct – Growth): Rs 2,000

Invesco India Contra Fund (Direct- Growth): Rs 1,000

Reliance Small Cap Fund (Direct -Growth): Rs 500

L&T Emerging Business Fund (Direct – Growth): Rs 1,000

Do I have an appropriate portfolio or should I add or remove funds?
-Prateek Tripathi

You have too many schemes in your portfolio. Also, it lacks focus. A long-term equity investors is typically asked to invest mostly in multi cap schemes. He can also add large cap schemes if he want to diversify and reduce the overall risk your portfolio. Diversification is meant to spread your investments across different assets to reduce risk and optimise returns. Investing small amounts across too many equity schemes do not result in diversification. It often results in diluting your portfolio and reduce overall returns.
  • 5.33%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 2.8 YearsTime taken to double money
  • 11.32%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.4 YearsTime taken to double money

You are currently investing in two large & mid cap scheme, three small cap schemes, a technology or IT scheme, mid cap scheme, large cap scheme, multi cap scheme, focused multi cap scheme, value scheme. Among these, large & mid cap schemes, mid cap schemes, small cap schemes, technology schemes are not in line with your risk profile. These schemes are not meant for moderate risk-takers. They are meant for aggressive investors with a large risk appetite and ability to withstand extreme volatility.

Reassess your risk profile. If it is indeed moderate, make sure that your portfolio is mostly in multi cap schemes. As said earlier, you can also take small exposure to large cap schemes if you want to reduce the overall risk in your portfolio through diversification. Also, you do not need 11 schemes in your portfolio. Three or four schemes are enough for most regular investors.

If you are new to mutual funds and not clear about basics of investing, seek the help of a mutual fund advisor . Invest for a few years, learn more about investing, gain experience and confidence before taking charge of your investments.
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