i am investing 2,000 each through SIPs in Axis Bluechip, ICICI Prudential Equity & Debt, and Parag Parikh Flexi Cap (till the inflow stops), and a lump sum amount 50,000 in Mirae Asset Large Cap. Since Parag Parikh Flexi Cap has stopped receiving new inflows, please suggest cash transfer options. I have an extra . is also 2,000 to invest. The recommended list of My Funds includes Canara Robeco Flexi Cap, Edelweiss Balanced Advantage and UTI Nifty Index. I am a moderate risk taker. Can I go ahead with any of these funds or others that might be better?
— Kumaran R.
Parag Parikh Asset Management Company has started accepting fresh lumpsum and SIPs in Parag Parikh Flexi Cap Fund with effect from March 15. If you had set up SIP before February 1, your SIP would have remained active.
While all the funds you are investing in are good, a little understanding of your investment horizon will be helpful. If your idea behind investing in ICICI Prudential Equity & Debt Fund was to take moderate risk, then I would like to state that this fund is an aggressive hybrid fund where the equity allocation will be around 70-75%. Hence, the risk on this fund will remain high.
If you want to go ahead with equity-oriented funds, you can consider making additional SIP investments in UTI Flexi Cap or Canara Robeco Emerging Equities Fund. Apart from this, Edelweiss Balanced Advantage Fund is also a good option if you want to reduce the overall risk of your investments.
Over the long term, returns from hybrid funds may be lower than equity funds as they have some allocation to debt.
Harshad Chetanwala is the co-founder of MyWealthGrowth.
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