Hi , I am planning to invest thru sip in axis focussed 25 fund Rs 50000.00 monthly for 5 years. Is it ok if my risk profile is high ? If 25 stocks could itself provide diversification do I need to split Rs 50000 in two to three different mutual funds ? Please advise.
- Manoj chordia | 1249 days ago
exactly you are on good path but the need is most important concern. so for five years may be it will be a high risky product for you ,may it will give you a high returns also i hope.... the adivice is to have a backup for your goal .
You have mentioned about SIP for 60 months. As an adviser I need to know whether the funds are required after 60 months or you will only stop SIP & continue to hold the units for another 5-7-10 years.
Case I: funds are required at the end of 60 months:
ICICI Prudential Balanced Advantage = 100%
Case II: funds are not required at the end of 60 months, you will only stop the SIP & continue to hold the units for 5-7-10 years
ICICI Prudential Balanced Advantage = 2
Generally investors make the mistake of choosing funds based on recent performance and this "recency bias" restricts the investors to dig a bit deeper into the portfolio. If you look at the concentration of the portfolio, you would get a better sense of the risk associated.
Look at the top 5 stocks in the portfolio and you would get a better sense. Not to take anything away from the fund, you still are better off diversifying your money amongst different strategies of fund managem
Axis Focused 25 Fund falls under the focused fund category. More than 85% of the portfolio comprises of large caps only. So, to answer your question – ‘If 25 stocks provide the diversification, does one need to split the investment into 2 or 3 different funds’. In this case, since this is a focused fund, it does not provide the diversification across the market caps. You can see the table below for some details regarding the fund.
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Y Yatish Wealth Managers 1229 days ago ...Read More 
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G Gaurav Seth 1230 days ago Fund Name...Read More 
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Its great to know that you want to start a SIP - While you are correct that you have already diversified your portfolio between 20-25 stocks then why you need more funds , but what you need to understand that all fund managers have a style and belief and no one fund will keep on performing all the time , hence I would advice you to split your sip as below.
1. Axis Focused 25 - 20k
2. Parag Parikh Long Term Equity - 20K
3. Kotak Emerging Equity - 10K
A
Hi. Axis Focused 25 Fund falls under the focused fund category. More than 85% of the portfolio comprises of large caps only. So, to answer your question – ‘If 25 stocks provide the diversification, does one need to split the investment into 2 or 3 different funds’. In this case, since this is a focused fund, it does not provide the diversification across the market caps. You can see the table below for some details regarding the fund.
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