26yo new investor, need help finalising my MF portfolio
Hi everyone,
I've been studying mutual funds for the past month, and I'm finally ready to start, but I'm stuck on a few decisions and could use input from people with more experience.
My profile:
Risk appetite: moderate
Investment Goal: Long-term wealth creation
Investment Horizon: 10+ years
Allocation Details: Starting SIP: ₹30,000/month, planning to increase to ₹40k–50k after 2 or 3 months.
Which App Do You Use?: Groww
Why You Selected These Funds & Not Similar Ones From Another AMC: I'm building around the current market and my risk appetite. My logic so far is to have a stable core (large-cap/index) plus growth exposure (mid- and small-cap) for the 10-year horizon. The specific picks below are based on returns and portfolio composition I studied over the last month. I'm sharing them for your review.
My plan and confusions:
- Small-cap - Bandhan vs Invesco. Both look pretty similar to me in terms of returns and portfolio. My only hesitation with Bandhan is its high AUM. Does a large AUM actually hurt a small-cap fund's ability to deploy money and stay nimble? Would love some real opinions on this.
- Mid-cap v/s Flexi-cap - Should I pick Flexi over Mid? If mid-cap, it would be either HDFC or Nippon. If Flexi, it would be HDFC.
- Nifty 50 v/s Large-cap v/s Nifty 100 - Which one should I choose here? If large-cap, it would be Nippon. (Should I also consider a quant-focused fund here?)
- Gold or silver: Should I also allot some money to gold or silver, separate from the ₹30,000 SIP above?
How should I divide the allocation? I'm considering two options:
- Option A: (1) Small-cap 25% · (2) Mid/Flexi 30% · (3) Large-cap/Index 45%
- Option B: (1) Small-cap 20% · (2) Mid/Flexi 30% · (3) Large-cap/Index 50%
I've done my theory homework, but I'd really appreciate hearing how experienced investors actually structured their portfolios at a similar stage. Roast my thinking if needed 🙏
Thanks in advance!