Lumpsum investment - Q & A Forum

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Raman asked 8 years ago

Hi Sreekanth, I am already investing in SIP in HDFC balanced Fund, HDFC midcap opportunities fund,SBI blue chip,ICICi prufocussed blue chip and Franklin Prima Plus I have also invested 2 lakhs as Lumpsum in Franklin Low duration Fund and approx the same amount in Birla SL MIP II Wealth 25 plan Now I have received 4 lacs from maturity of FD which I would like to invest in MF Please suggest

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Sreekanth Staff answered 8 years ago

Hi, May I know your investment time-frame?? All the above listed funds are good ones. However, you are investing in two large-cap oriented funds ie SBI bluechip and ICICI Focused, which belong to same fund category (Large cap) and their portfolios overlap by around 47%. So, you may discontinue investing in either of the funds and divert the money into other existing funds. Related articles : https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/

Raman replied 8 years ago

I want to invest this 4 lacs for 3 years. In which fund should I invest?

Sreekanth Staff replied 8 years ago

Hi.. You may consider investing in a Short term Debt fund (Ex Franklin Low duration fund) or in a conservative MIP fund like SBI MIP Floater fund (this category has higher risk profile than short term debt fund).