InvestorQ : Have selected some fund for Sip Worth 50k Need an Expert View. 1) Motilal Oswal Nasdaq 100 Fund 2) Pilgrim Midcap Fund/Axis Midcap 3) Dsp Health Care Fund 4) Franklin Technology Fund 5) UTI Index Fund Your views please
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Have selected some fund for Sip Worth 50k Need an Expert View. 1) Motilal Oswal Nasdaq 100 Fund 2) Pilgrim Midcap Fund/Axis Midcap 3) Dsp Health Care Fund 4) Franklin Technology Fund 5) UTI Index Fund Your views please

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IIFL Expert answered.
3 months ago
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It is very important to mention risk appetite, investment horizon, and financial goals for which the investment is being planned. Moreover, the selected portfolio looks quite directionless and carries a very high risk. We urge the investor to choose goal-based investment options on the linked to risk profile and not to chase only looking at high returns.

Motilal Oswal Nasdaq 100 Fund is an international category fund that invests in overseas markets. International funds bring additional diversification in the portfolio but carry economic specific risk and are treated as debt funds for taxation purposes. Such schemes are recommended to those investors which have a high-risk appetite and an investment horizon of at least 7-8 years. Similarly, mid-cap funds are recommended to the investors which have a high-risk appetite with an investment horizon of at least 7-8 years.

DSP Healthcare Fund and Franklin India Technology Fund both are sector-based funds and therefore carry very high risk due to their concentration in the sector they follow. Only seasoned investors who are experts in predicting the cycles of various sectors are recommended to invest in sector-oriented mutual fund schemes. Such funds are recommended to those investors who have a very high appetite for market volatility and an investment horizon of at least 8-10 years. Index funds are a good alternative for passive and low cost investing.

It is recommended that the concerned investor go through a risk profiling exercise, define his realistic financial goals, and link each investment to the defined financial goal before making any investment decisions. However, if we were to recommend a mutual fund portfolio for a moderately high-risk profile with an investment horizon of at least 7-8 years, a below model portfolio could have been one of our choices.

1.       UTI Index Fund – Growth (20%)
2.       ICICI Prudential Balanced Advantage Fund – Growth (25%)
3.       Axis Mid Cap – Growth (15%)
4.       IDFC Bond Fund – Short Term Plan-Growth (25%)
5.       Motilal Oswal Nasdaq 100 Fund (15%)
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