Hi
Hope you are doing great!
Since small cap is now below 200 dMA I decided to invest some lumpsum like 1L- 2L in Franklin Smaller Companies direct. This will be for long term say 15 year goal. Please suggest if this is fine.
This will be my fresh investments in any small cap fund.
My current portfolio consists (all direct, and growth)- Axis long term equity fund, Franklin India Equity,Tata hybrid equity, Franklin low duration, ABSL regular saving fund.
I had invested in SBI tax gain 3+ yrs back- which is on loss right now. (got some dividends though) No hopes there. Planning to redeem and move to any other fund.
When I have some lump sum savings or bonus amount can I invest in ABSL regular saving fund?
Also please let me know if I should revisit on any of the existing ones.
Thanks and Regards
Janani
4 Answers
Dear Janani,
Yes, there has been decent correction in Mid/Small cap indices.
Your idea of making additional lump sum investment in a Small cap fund is good. You may go ahead with your plan. But, do note that the Fund's portfolio may not be exact replica of its benchmark index.
ELSS Fund (SBI Taxgain) : If your investment objective is for long-term wealth accumulation, suggest you not to go for Dividend option, opt for Growth plan instead. You may switch to your existing fund Axis LTE or Birla Tax relief '96 fund.
TATA Hyrbid Fund (TATA Balanced fund) has not been performing well in the recent years, so you may switch to HDFC Hybrid Equity Fund.
Lump sum investment : May I know your investment objective(s) and time-frame for this??
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Thank you,
Yes ELSS SBI TAXGain was long back in regular based on someones suggestion. I shall redeem and move to prima plus direct growth.
Sure I shall look into Tata balanced.
With respect to lump sum in ABSL MIP is for around 5 years. I have around 1L extra from bonus. Can I invest lumpsum in this ?
If my goals is for more than 8+ years I shall invest in Prima plus or Smaller companies. Is this approach correct?
Thanks
Janani
Also for moving from tata balanced to hdfc balanced - how should I go about this ? Like STP after moving to some debt or lump sum? Or manually based on market situation move partial lump sum amounts.
Hi,
If you have an investment horizon of 8+ years, you may add one Mid-cap fund to your portfolio.
Ex : HDFC Mid-cap opportunities fund / Franklin Prima Fund etc.,
For a time-frame of 5 years, you may consider hybrid funds like MIP or Equity hybrid fund (have higher risk compared to MIPs) or in both categories.
TATA to HDFC -> Personally, I prefer switching manually in few installments based on market conditions.
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