Glimpse Into Kshitiz Mahajan's High-Risk Portfolio, Fund Picks And Strategy

Financial experts are always asked to build a model portfolio for their clients, but they don't always reveal what their strategy is to win in the money-making game.

Kshitiz Mahajan, chief executive officer of Complete Circle, gives us a glimpse into his high-risk portfolio on the Mutual Fund Show.

"My view of starting investing in mutual funds is to know when you want the money. It's important to have a goal, and it's easier to plan and choose funds," he said. Having a certain time horizon till which one wants to stay invested will help plot the trajectory of short-term and long-term investing goals. Having a purpose as well will bring more clarity to the 'why' of investing as well, according to Mahajan.

"I understand equities a little better because I have been in the field. I started with mutual funds and SIPs. When you have time on your side, your risk appetite increases," he said. Having a longer time horizon gives investors the ability to rise above the worries of short-term volatility and market falls, as the long-term outlook is not easily shaken by these factors.

"In my portfolio, I have 30% small caps. When there is a focused fund, there is a mid-cap allocation one gets. My risk appetite is high, so I have that allocation toward small caps because I have time," said Mahajan, explaining the reasoning behind his calls. A significant allocation into bolder calls, like sectoral and thematic funds, also comes along with being invested for the long term.

"Sectoral and thematic funds have been an addition in the last couple of years. I have added manufacturing to the portfolio along with banking. I think there are a few sectors that will grow with the country. There is underperformance in banking, so I have kept this category as well," he said. Given the cyclical performance of the sectors and themes, new investors may not be able to time the market.

"My allocations in international funds are passive, and the rest are active. I think India has a long way to go before passive is as popular as passive. There are good fund managers doing the show," he said, addressing the growth in AUM that the passive category has seen.

Talking about some of his top picks in his portfolio, Mahajan cites SBI Small Cap Fund, HDFC Focus Fund, along with a few others.

"I hold SBI Small Cap Fund along with Nippon Small Cap Fund. The way these funds perform is very different. I only have one HDFC Focus Fund, and they are doing well as the broader markets have done well too. For larger mid-caps, I like Tata, as the sector picking is active," he said.

Being an investor who is focused on the long term, the fluctuations and dips in the short term do not faze his belief in the equity market.

"You should not keep on looking at your investments. But one can step up come what may. Even if the markets fall, I'll always be thinking about how I can add a little more sugar and make the portfolio sweeter," he noted.