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Need suggestions regarding MF SIP investments

Last updated: July 31, 2018

Q & A Forum › Category: Mutual Funds › Need suggestions regarding MF SIP investments
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satyasiddem asked 5 years ago
Hi Sreekanth,
I would like to seek a suggestion regarding Mutual fund investment. Currently I am doing an SIP in the following mutual funds for long term perspective:

  1. Axis Long Term equity – 3500/month
  2. Franklin India Smaller Cos Fund : 3500/month
  3. UTI Mid cap fund : 3750/month
  4. Aditya BL Equity Hybrid :2500/month
  5. HDFC Hybrid Equity : 2500/month

As my portfolio is lacking a large/multi cap , I am planning to start investing in Invesco India Multi Cap fund with 1500/month for 7-10 year time frame. I have verified few multi cap funds and observed this fund has the least overlap among all and a decent returns over the past few years. Could you please advise if I can go ahead with this SIP?

Regards,
Satya

Question Tags: #SIP #Mutual Fund

4 Answers
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Sreekanth Staff answered 5 years ago
Dear Satya,
Typically, we can consider ELSS Fund(s) as multi-cap funds and you already have one (Axis LTE).
The above listed funds are decent ones. Keep a track of the performance of UTI mid-cap fund.
Invesco Fund multicap fund was erstwhile a Mid-small cap based fund.
Considering your investment time-frame and that you do not have a multi-cap/large cap fund, you may consider a fund like Birla Equity fund.
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satyasiddem answered 5 years ago
Thanks Sreekanth. Birla Sunlife Equity has on overlap of over 27% with HDFC ybrid Equity & 37% with Birls Sunlife Hybrid Equity. Can I still proceed with investing in this fund ?
 
Regards,
Satya

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Sreekanth Staff answered 5 years ago
Dear Satya,
37% is a bit on the higher side! 
Somehow, I believe that you can invest in your existing ELSS / Balanced funds itself.
Else, you may go ahead with Invesco.
Kindly note that the Funds’ Portfolios change over a period of time and also their Overlap %s..

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satyasiddem answered 5 years ago
Thanks Sreekanth

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