Begin Mutual fund investment

[NitishKumar]

Hi Team,

I am first time investing in MF,
Target is, to invest 12-15 years in Mutual Funds, with 10K/Month and increase it by 10% every year.

Expecting 15% or more profit, this corpus can be utilized for kids education or for retirement.
Now, which are suitable for this requirement, either large cap or mid cap or small cap or flexi etc. I would like to have 3-4 categories in my portfolio.

Now after selecting cap, which risk factor i need to consider,
high or moderately high or very high or moderate or moderately low or low.

Kindly suggest on this and also suggest whether to change investment years , investment amount etc.

 

[arjungoyal12]

As My personal opinion, you must go with these funds as your choice

• Small Cap: Quant or Nippon Fund
• Mid Cap: HDFC or PGIM Fund
• Flexi Cap: Parag Flexi Cap is like a monopoly here

Apart from that, you can go with some large cap funds from Canara, ICICI or explore other options

 

[Mohit kharb]

Hello, Nitish kumar you are on the right track this is the right decision and right time to invest in mutual funds.
I suggest you should select one flexi cap , one mid cap and one small cap mutual fund.
Your allocation will be as per the table:-
Flexi cap-5000 (Parag parikh flexi cap)
Mid cap-2500 (PGIM Mid cap)
Small cap-2500 (Quant small cap)
I think there is no risk factor in mutual fund for your time horizon.
Here I attach some return illustrations for your reference.

 

[Anant1221]

Hi, @NitishKumar

As per your time horizon and the purpose of investment. I would suggest you to go with Mid cap and Small cap mutual funds.
Currently, I my opinion, the best performing mutual funds are:-

Midcap:- Quant midcap fund, PGIM midcap fund.
Small cap:- Quant small cap fund, Nippon India small cap fund.

I don't think there is any need to invest in large cap fund unless there is a priority of capital preservation. So, go for them from now till next 5 years.
Also please don't forget to review your investments in every 6 months. you can also reshuffle your investment portfolio in every 15-18 months.
You can also take financial advisory services from whom you trust the most.

Feel free to ask anything else.
Happy Investing.

 

[NitishKumar]

As per your time horizon and the purpose of investment. I would suggest you to go with Mid cap and Small cap mutual funds.​

Hi @Anant1221

Thanks for your reply.
How many mid cap and small cap funds i can consider for in vesting in my portfolio. Either 1 mid cap and 2 small cap
or
2 mid cap and 1 small cap
or
2 mid cap and 2 small cap

Also can i consider flexi cap, is it suitable for me ?

Finally, i couldn't finalize 1 fund out of 2. Which area i should think about, less NAV or high overall return or less expense ratio.

 

[Anant1221]

Hi, @NitishKumar

See with 10K/month investment it is better to invest in 1 small cap and 1 midcap fund.
Your time horizon is quite long soo ,i don't want you to waste your money in flexi cap for lower returns.
As your investment period is long, you can go for high risk and high reward mutual funds. i.e. midcap and small cap funds.

Medium NAV with high returns and expense ratio around 0.7% is fine.

Hit like, if i was able to solve your query. It gives me motivation to keep going.

Happy Investing.