Need suggestions regarding MF SIP investments

Q & A Forum › Category: Mutual Funds › Need suggestions regarding MF SIP investments

satyasiddem asked 8 years ago

Hi Sreekanth, I would like to seek a suggestion regarding Mutual fund investment. Currently I am doing an SIP in the following mutual funds for long term perspective:

Axis Long Term equity - 3500/month
Franklin India Smaller Cos Fund : 3500/month
UTI Mid cap fund : 3750/month
Aditya BL Equity Hybrid :2500/month
HDFC Hybrid Equity : 2500/month

As my portfolio is lacking a large/multi cap , I am planning to start investing in Invesco India Multi Cap fund with 1500/month for 7-10 year time frame. I have verified few multi cap funds and observed this fund has the least overlap among all and a decent returns over the past few years. Could you please advise if I can go ahead with this SIP? Regards, Satya

4 Answers

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Sreekanth Staff answered 8 years ago

Dear Satya, Typically, we can consider ELSS Fund(s) as multi-cap funds and you already have one (Axis LTE). The above listed funds are decent ones. Keep a track of the performance of UTI mid-cap fund. Invesco Fund multicap fund was erstwhile a Mid-small cap based fund. Considering your investment time-frame and that you do not have a multi-cap/large cap fund, you may consider a fund like Birla Equity fund. Related Articles :

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satyasiddem answered 8 years ago

Thanks Sreekanth. Birla Sunlife Equity has on overlap of over 27% with HDFC ybrid Equity & 37% with Birls Sunlife Hybrid Equity. Can I still proceed with investing in this fund ? Regards, Satya

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Sreekanth Staff answered 8 years ago

Dear Satya, 37% is a bit on the higher side! Somehow, I believe that you can invest in your existing ELSS / Balanced funds itself. Else, you may go ahead with Invesco. Kindly note that the Funds' Portfolios change over a period of time and also their Overlap %s..

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satyasiddem answered 8 years ago

Thanks Sreekanth