23 year old's portfolio

Dear Shrikanth,

I am a regular visitor of your Blog. Keep up the good work.

I am 23 year old and investing 6000 every month through SIP's. I am a long term investor , planning to invest for atleast 5 years.



2000 in HDFC Growth Fund.(Growth)

2000 Birla Sunlife Frontline Equity Fund. (Growth)

2000 DSPML Top 100 Equity Fund. (Growth)

Do you think that is this a good distribution as i can take higher risks at my age.

Would you suggest any changes?



Thank you in advance.



Rohan Agarwal



SRIKANTH SHANKAR MATRUBAI'S REPLY

Dear Rohan,
It is very heartening to see that such an young age, you have started investing in Mutual Funds, and that too with a Long Term view. Good Going.
You seem to have tilted your investment too much towards Large Cap Funds. While Large Cap Funds do protect you form Downside when the Market is Bearish (like we are in now), but they tend to lag a bit compared to Diversified Equity Funds over a Longer Term.
With Age on your side and consider your long term view, you can consider investing in some Good Diversified Equity Funds which also have some exposure to Mid-Cap and Stocks which are Growth Oriented. These Funds do not have any Cap bias nor Sector bias, concentrating purely on Growth and can thus give you Better return than Pure Large Funds.
While you can continue your investment in HDFC Growth Fund, you may reduce your sip in Birla sunlife Frontline Equity fund and DSPML Top 100 Fund.
With the 2000 saved, you can invest in
DWS Investment Opportunity Fund
fidelity Equity Fund
Best of luck,
Srikanth Shankar Matrubai.