Invest in two of the same type of mutual funds

Q & A Forum › Category: Investments › Invest in two of the same type of mutual funds

sk asked 6 years ago

Hi, I am planning to invest in aggressive hybrid MF with planned proper asset allocation and with regular rebalancing. I have shortlisted ICICI Equity & Debt and SBI Hybrid Equity in this category. Can I invest in both these MF as part of my aggresive hybrid allocation or it is better to invest in only one ? Appreciate any inputs. Thank you.

2 Answers

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Sreekanth Staff answered 6 years ago

Hi, May I now if you have any other MF schemes in your current MF portfolio?

Sreekanth Staff replied 6 years ago

Also, what is your investment horizon?

sk replied 6 years ago

Thanks Sreekant for your response. My investment horizon is 15 years and my plan is to start with 50% equity and 50% fixed income for the first 6 years and then gradually decrease equity and increase the Fixed Income so that by 15th year I have only fixed income. In the equity portion, my plan is for 40% hybrid equity, 40% balanced advantage, 15% multi cap and 5% mid cap. So my query is within each category, say hybrid equity, can I invest into two MF like SBI hybrid equity and ICICI hybrid (ICICI Equity and Debt Fund) and similarly within balanced advantage, can I invest into two of the same category?

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Sreekanth Staff answered 6 years ago

Hi, Equity : Debt ratio of 50 : 50 is fine. But dont you think with 80% allocation to Hyrbid funds, your overall Debt allocation is more?? You may go ahead with SBI and ICICI Equity hybrid funds. SBI fund is an aggressive one whereas ICICI is a little conservative one. Also, the Funds' equity portfolios overlap by just 17%, which is fine.

sk replied 6 years ago

Thanks Sreekanth for your quick response. Yes the overall debt is more as I was looking for more assured returns but do you have any suggestions for such 15 year goals which is for retirement? Do you think I can include other more equity oriented MF? Appreciate any suggestions or tips. Thanks again.