Since last 5-6years i have saved my money on saving account and fds. Then i get to know abt mutual fund and have SIP since 1.5years
I have 5 mf SIP in sbi from that i am stopping 2 funds : sbi mag equity and sbi mag global fund and continue rest 3. Also adding 3 more funds to my SIP as below
1. SBI MAG BALANCED FUND
2. SBI MAG BLUE CHIP FUND
3. FRANKLINE IND SMALLER COMP FUND
4. SBI MAG MID CAP FUND
5. ICICI VALUE DISCOVERY FUND
6. ICICI TOP 100 FUND
I was doing SIP of 10k which i want to increase to 20k.
Please advise me have i selected correct fund? If yes then how to divide the 20k in these 6 funds.
My goal : wealth creation
Time frame is > 3years
3 Answers
Hi,
The portfolio looks fine. But kindly do remain invested for longer period.
Also, SBI bluechip and ICICI Top 100 are both large cap oriented funds, so you may keep a track of the Funds' portfolio overlap.
Suggested readings;
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
Amazing i had no idea about this mf portfolio overlap
Learnt new thing today.
But one que how to decide by the result.
The result of overlap tool should be lower or higher % ?
I just compare sbi blue chip and icici top 100
and result shows 29% so should i keep both the funds in my portfolio?
Hi,
If the two funds A & B invest in almost same Portfolio of Stocks/shares, the overlap between the two Portfolios will be high. Meaning, instead of investing in two funds, may be it is just enough to invest in one of these two funds.
But kindly note that the Funds' portfolios may change over a period of time depending on market dynamics and/or fund's strategy.
There is no fixed thumb rule as to how high overlap is bad, may be lets say if it is 60% or so, can drop one fund.
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