I am looking to invest in a multi cap fund for 10+ years for a monthly SIP of Rs 10000. Goal is to create maximum possible wealth out of this investment. I wanted to check which one should I choose between sbi multi cap, icici pru value discovery, kotak select focus. Or if there is any other fund. Thanks
Why Multi Cap Funds for your 10 years goal? Where is your debt portfolio?
Hi basu in terms of debt I am parking it in NRE FDs as they give high rate without any tax deductions. In equity I am investing in sbi blue chip, franklin smaller companies and mirae emerging blue chip. To avoid my portfolio to be too mid small focused I am looking to add a diversified or multicap fund.
What is the asset allocation of debt:equity for this 10 years goal? The problem with multi cap is, they may switch to any category and during that point of time, you may end up in having over exposure towards particular cap. If you are ready to track such movement of multi cap fund, then go ahead. I feel one large cap, one small cap and one mid cap which you already investing is suffice.
Thanks Basu – my current debt allocation is around 40-45%, I am trying to reduce it to 25-30% in next few months. As you recommended i am happy to keep it to 3 funds sbi blue chip, mirae emerging blue chip and franklin smaller company. Instead of adding a multicap will increase the investment in these existing funds. Hope its ok