Equity-banking - Q & A Forum

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subbiah asked 7 years ago

i want to invest 1.5 Lakh lump-sum in banking fund for 5yrs or more. Is it advisable to invest in ICICI Pru banking & financial DG fund or SBI Banking & financial DG fund?? Pls suggest one above fund for Lump sum or SIP. I have 1multicap, 1large&midcap, 2small cap, 1Aggressive Hybrid fund, 1Value fund & 1Focused fund in my portfolio investing via SIP. Tks

5 Answers

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Sreekanth Staff answered 7 years ago

Hi, If ok, you may kindly share the MF scheme names that you have invested in.. May I know why would you like to invest in a banking (sectoral) fund? Is your investment horizon around 5 years? (DG? - Do you mean Dividend/Growth??)

subbiah replied 7 years ago

Hi, Thank u for reply…My schemes are below all are Direct Growth (DG)
1) Parag parikh long term fund – Rs6000 SIP
2) Canara Robeco Emerging Equity fund – Rs6000 SIP
3) Franklin India smaller cos – Rs7000 SIP
4) DSP small cap fund – Rs4000 SIP
5) ICICI pru Equity & Debt fund – Rs 5000 SIP
6) ICICI pru value discovery fund – Rs5000 SIP
7) Franklin focused fund – Rs4500 SIP
8) Franklin low duration fund – Rs1,75,000/- (Lumpsum- Invested 2yes back)

Returns from banking sector fund was very good for last 1yr, 3yrs ,5yrs & 10yrs. So i feel its better to invest lumpsum amount like FD in this fund.
Pls guide me, Is this ok? or suggest some other funds.Time Horizon 5 or more then 5yrs.(wealth creation purpose only)
Note: DG – Direct Growth

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Sreekanth Staff answered 7 years ago

Hi, The listed funds are good ones, but I believe that your portfolio has a higher risk profile with greater allocation to mid/small/value/focused based funds. Most of the MF Schemes may already have higher exposure to Banking / Fin services Stocks hence given a choice I would avoid picking a banking (sectoral) MF scheme. Related articles :

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subbiah answered 7 years ago

Thank u for your opinion......... pls guide me where can i invest 1.5lakh.......in existing fund?..if yes, which fund. Also suggest SIP amount allocation in existing funds. Tks for guidence

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Sreekanth Staff answered 7 years ago

Hi, Allocation amount depends on your time-frame, risk profile and required corpus amount. You may kindly consult a fee-only financial planner on this. You may invest lump sum amount in 2 to 4 installments over the next 6 month period in funds like ICICI pru Equity & Debt fund, Parag Parikh fund, ICICI Value discovery fund / Franklin Focused ..

subbiah replied 7 years ago

thanks a lot and appreciate your kind advice

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Sreekanth Staff answered 7 years ago