Want to invest in mutual funds but don’t know how to go about it?

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Get all your mutual fund related queries answered by our expert, Manoj Nagpal, managing director and chief executive officer, Outlook Asia Capital, on our show Mutual Fund Corner.

Q: 28-year-old Pavan Pioneer writes us from Bengaluru. I am investing Rs 2,000 in Reliance Small Cap Fund (Growth), Rs 1,000 in SBI Small Cap Fund, Rs 1,000 in Axis Long Term Equity Fund, Rs 1,000 in DSP Tax Saver Fund and Rs 1,000 in Aditya Birla Sun Life Tax Relief 96 from last September 10, 2018 for the purpose of tax relief. My horizon is 10-15 years.

A: To plan your tax savings, ideally just have two funds with distinct investment styles. In your selection, you can keep the Axis Long Term Equity and Birla Tax Relief as the two tax saving funds.

Your current portfolio is high risk. Since you have just started, ideally build a core portfolio with multicap funds rather than the small cap funds you have selected. Add Kotak Standard Multi Cap or ICICI Multi Cap to your portfolio to reduce risk.

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