MF portfolio review (Long term investments)

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anujtan asked 8 years ago

Hi Sreekanth, I have running SIP since last 2 years on ICICI Prudential Value Discovery Fund - Direct Plan (G) Franklin India Smaller Companies Fund - Direct Plan (G) Since last 5 months on ICICI Prudential Balanced Fund - Direct Plan (G) Objective is long term 15 years for wealth creation Question 1) - shall continue SIP on ICICI Prudential Value Discovery Fund? as since last some time this fund is not performing that well compare to peers and moneycontrol also put in rank 5th. 2) Shall move slowly in Motilal Oswal MOSt Focused Multicap 35 Fund in same diversified category? 3) Invested lumpsum 2.5 years back in Franklin India High Growth Companies Fund (G) Continue or move in other fund? Apart from this, as per out earlier discussion surrendered LIC policy, so which fund will be good to invest surrender amount for 18 years. Thanks, Anuj

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Sreekanth Staff answered 8 years ago

Dear Anuj, No single fund can remain in Top rank for long. So, kindly look at the fund's consistency rather than whether it is in top 5 or top 10. Suggest you to continue with your investment plan in Three funds. Franklin HGC fund is also a multi-cap fund. Though Motilal 35 is a decent performer, investing in too many funds that too from same fund category (multicap) may not be really beneficial. Kindly read : https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ You can re-invest the amount (surrender value) in your existing funds itself. Related articles : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/200-day-moving-average-dma-mutual-funds/

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anujtan answered 8 years ago

Thanks Sreekanth as always :) Wish you a very happy new year! Concern was not looking on Fund ranking but reviewing after 2 years if all are on track, when compare to benchmark and category, ICICI Pru value discovery is little down. So shall continue in same fund or move to other fund in same category say Motilal 35 fund as replacement rather than adding a new fund in portfolio. Thanks, Anuj

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Sreekanth Staff answered 8 years ago

Dear Anuj, Thanks for the wishes & wish you too a very happy new year! ICICI Valuediscovery mostly works like a contra fund, it generally performs well in a very volatile and downward markets. If your investment time-frame is very long-term, you may stick to it, track its performance for 1-2 more years. Else, you may discontinue with it and allocate higher amount to other fund Motilal 35.. Related article : https://www.relakhs.com/mutual-fund-schemes-categorization-latest-guidelines/