Advice needed :SIP in IDFC Premier Equity Fund

#1
I am an investor in the said fund. Actually through the SIP route. Recently the fund manager ,Kenneth Andrade left. There have been reports that this could affect the performance of the fund . Further the replacement was moved to Hongkong. I have checked the performance on 3 yr,5 yr and 7yr ,it is under performing peers by huge margins although beating benchmark.

1. Do you suggest I stop the SIP and wait or move to another fund ?

2. Rivals like FT smaller cos.Fund & DSP micro cap have better performance. Should I shift to one of these or any other you recommend.

3. Portfolio allocation is different for all 3 funds. Premier equity has larger allocation to mid cap but the other 2 are more skewed towards small cap.

Kindly suggest what I should do
 

TracerBullet

Well-Known Member
#3
I am an investor in the said fund. Actually through the SIP route. Recently the fund manager ,Kenneth Andrade left. There have been reports that this could affect the performance of the fund . Further the replacement was moved to Hongkong. I have checked the performance on 3 yr,5 yr and 7yr ,it is under performing peers by huge margins although beating benchmark.

1. Do you suggest I stop the SIP and wait or move to another fund ?

2. Rivals like FT smaller cos.Fund & DSP micro cap have better performance. Should I shift to one of these or any other you recommend.

3. Portfolio allocation is different for all 3 funds. Premier equity has larger allocation to mid cap but the other 2 are more skewed towards small cap.

Kindly suggest what I should do
It has done ok, you cant compare it with smallcap funds. Once you have selected a fund for good reason, you have to give it chance to perform over a market cycle. Short underperformance happens. Comparing returns is not easy as recent outperformance can skew returns. What looks good now may not have looked that good a year ago. Small cap / micro cap funds look great now because of last 1 year outperformance, but now perhaps they are not as cheap anymore.

But yes, he has left - we can wait and watch. But we also have other options too. I prefered to move to UTI Midcap( but i was going to do it anyway. ). UTI fundmanager managed Sundaram Select Midcap in last bull run and did very well.

Some other good Midcap options - Franklin Prima, HDFC Midcap, UTI Midcap etc. You can also look at multip cap funds that have option to move anywhere like Franklin High Growth.

If you decide to move, take care of exit loads - maybe move only portion that is out of exit load
 
#4
Thanks for your advice. Infact I have checked the performance of both prima fund and premier equity fund.. Nothing much of a difference. so i guess will wait and watch.
 

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