Low SIP returns – is SIP mode really good?

Q & A ForumCategory: InvestmentsLow SIP returns – is SIP mode really good?
Ashish Shrivastava asked 6 years ago
Dear Sreekant, I have started SIP of 1100 monthly in L&T india fund 3.5 years back and it's return on current date is less than 4%. My financial adviser asked me to stop SIP in the L&T Fund and start fresh SIP in good performing fund. Here I have confusion. 1) SIP is suppose to continue for longer time so avoid maket violation but if I stop then I will loose my tenure in SIP. 2) If I stop current SIP then my fund will be locked at 4% so again there is a loss to my fund. 3) If I start new SIP today then my new SIP tenure will start from today Would you suggest to switch SIP fund like this ? If yes then where is the core of SIP , I mean SIP meant to continue for longer period but if we switch fund then will I not be losing longevity of SIP ?
3 Answers
Sreekanth Staff answered 6 years ago
Hi, May I know your investment objective and time-frame for this investment? Do you invest in any other MF schemes in your portfolio?  
Ashish Shrivastava replied 6 years ago

Dear Sir,

My objective of 1100/month SIP is for retirement and I will continue this policy until my 60 years of age.

Yes I do invest in other MF scheme too.

Sreekanth Staff answered 6 years ago

Hi,
SIP is not a guarantee, it's a hope!
One needs to have a proper Asset Allocation and invest in both Equity & Debt Products to fulfill his/her financial goals.
May I know your other MF Scheme names and are you happy with their performances??

Ashish Shrivastava replied 6 years ago

Dear Sir,

Here is my investment summary.

1) Axis Focused 25 Fund – Gr : 75000 Invested
2) Axis Long Term Equity Fund – Gr : 28000
3) Canara Robeco Equity Diversified Fund – Gr : 72000
4) Invesco India Contra Fund – Gr : 65000
5) Kotak Equity Arbitrage Fund – Gr : 97000
6) Kotak Standard Multicap Fund – Gr : 68000
7) Kotak Tax Saver – Gr : 21500
8) L&T Midcap Fund – Gr : 75000
9) Mirae Asset Tax Saver Fund – Gr : 32500
10) Motilal Oswal Long Term Equity Fund – Gr : 96000
11) Nippon India Low Duration Fund – Gr : 100000
12) Nippon India Tax Saver Fund – Gr: 75000
13) TATA Short Term Bond Fund Regular Plan – Growth: 135000
14) SBI Savings Fund – Gr : 5000

SIP are as follows
1) L&T India Value Fund – Gr : 1100/Month
2) Axis Multicap Fund – Gr : 3000/Month
3) HDFC Mid Cap Opportunities Fund – Gr : 2000/Month
4) L&T Emerging Businesses Fund – Gr : 2000/Month
5) L&T India Value Fund – Gr : 3000/Month

Sreekanth Staff answered 6 years ago
Hi, Investing in too many funds may not be really beneficial. Also, this may lead to high overlap. Kindly go through below article and you may revert to me with your analysis.. Mutual Fund Portfolio Overlap Comparison Tools
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