Should I reshuffle my SIPs in mutual funds?


I am an aggressive investor and looking to create wealth over a long period. I have some SIPs in the following mutual fund schemes. Could you let me know if I need to reshuffle my SIPs?

Aditya Birla Sun Life Focused Equity Fund (formerly known as Aditya Birla SunLife Top 100 Fund): Rs 2,000 (Dividend reinvest, direct plan)
Franklin India Equity Fund (growth): Rs 1,500
ICICI Prudential Bluechip Fund (Direct plan, growth): Rs 1,000
ICICI Prudential US Bluechip Equity Fund (Direct plan, growth): Rs 1,500
Kotak Standard Multicap Fund (Direct plan, growth): Rs 3,000
L&T Infrastructure Fund (Direct plan, growth): Rs 1,000
Mirae Asset Emerging Bluechip Fund (Growth): Rs 3,000
Mirae Asset India Equity Fund (Direct plan, growth): Rs 1,000
Motilal Oswal Multicap 35 Fund (Direct plan, growth): Rs 2,000
Quantum Long Term Equity Value Fund (Growth): Rs 2,000
SBI Bluechip Fund (Direct, growth): Rs 2,000

— Ram Mohanan

You have too many mutual fund schemes in your portfolio. Are you sure you would be able to monitor and review their performance at least once or twice a year? If no, you should consider pruning your portfolio. We have noticed that most investors struggle to keep track of their mutual fund portfolios with many schemes. That is why we typically ask investors to limit the total number of schemes to four or five.

You are currently investing in three largecap schemes, four multicap schemes, a value scheme, infrastructure scheme, international scheme, and a large & midcap scheme. You have not shared your risk profile with us, but we are assuming that you have a moderate risk appetite. If yes, you may invest mostly in multicap schemes, and a small part of your total investments in largecap schemes to diversify and reduce the overall risk in your portfolio.

You should remember that large & midcap schemes and infrastructure schemes are meant for investors with higher risk profile. If these schemes do not match your risk profile, you should consider stopping your SIPs. You may consider selling them after considering the tax and exit load if any.



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