Dear below is our previous conversation....
Fund 1&2 overlap - 23%
Fund 1&6 overlap-32%
Fund 2&6 overlap - 18%
all other funds overlap are below 18%. pls advice ..can i continue or stop one fund. Also DSP Br small cap fund statrted 18months before and returns are -3.5%. can i stop this fund or can wait for some more time.
Dear sreekanth,
I m investing in below MF for last 3yrs by SIP
1) Birla Top100fund DG-Rs3000
2) Franklin india high growth DG -Rs5000
3) Franklin India Smaller cos DG-Rs5000
4) DSP BR micro cap fund DG -Rs4000
5) ICICI balanced fund DG-Rs4000
6) ICICI pru value discovery DG- Rs4000
7) Tata Equity P/E fund DG – Rs5000
after new re-categorization rules,VR & money control degraded the star rating from 5star to 3star in some funds. my view is for 10yrs. Can i continue in this fund or to switch out…pls advice
Sreekanth Reddy
June 14, 2018
Dear Subbiah,
Individually the funds in the above list are decent ones.
Investing in too many funds may not be really beneficially as this may lead to overlap.
Suggest you to check these Funds’ portfolio overlap after few months as AMCs are now re-structuring the Schemes and then can trim down your portfolio a bit.
As of now, you may continue with your investment plan.
1 Answers
Hi,
The overlap %s look reasonable. But, do note that overlap % can increase or decrease among the funds over a period of time.
There has been a deep cut in stock prices of Small/Mid-cap stocks in the last few months. Hence, you can find returns from Funds like DSP micro-cap not that great.
As you have a long-term view, you may continue with your investments..
As of now, kindly do not go by the Ratings given by Portals like VRO..
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