Can I invest in Motilal Oswal Multicap 35 Fund?


I am 35 years old. I have an aggressive risk profile. I am fairly new to mutual funds. I am investing in the following funds:
Mirae Asset Large Cap Fund: Rs 4,000 per month
Mirae Asset Emerging Bluechip Fund: Rs 4,000 per month
HDFC Small Cap Fund: Rs 4,000 per month
Axis Multicap Fund: Rs 4,000 per month
Kotak Emerging Equity Scheme: Rs 3,000 per month
UTI Transportation and Logistics Fund: Rs 3,000 per month

My investment horizon is seven to eight years.

I am investing Rs 22,000 per month via SIP. I am willing to increase my investment by 50 per cent in the coming months, but I need your advice. Is my investment strategy right? I plan to invest Rs 4,000 in Motilal Oswal Multicap 35 Fund via SIP. Rs 1 crore in the next 10 years is my financial goal.
–Michael Tinto

Vishal Dhawan, Founder, PlanAhead Wealth Advisors, responds:

Your return expectations are too optimistic, despite considering your SIP strategy, aggressive risk appetite, selection of multiple schemes with good track records and your willingness to enhance your investments by 50 per cent.

I would advise you to rationalise your return expectation and align it with long- term nominal GDP growth expectations and corporate earnings growth expectations. Apart from Axis Multicap Fund and UTI Transportation and Logistics Fund, the rest of the schemes in your portfolio are good. You can continue your investments in them.

Before you exit the Axis and UTI schemes, do not forget to check the exit load and taxes. You will still have five schemes left in your mutual fund portfolio, including the Motilal Oswal Multicap 35 Fund. You could consider increasing your investment in these existing schemes, rather than investing in new schemes

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