SIP Guidence

[mkoolwal]

Hello,

This is my first post in this forum. I have been investing in mutual funds since 2007, both as lumpsum and through SIPs. Currently, I invest Rs. 2000 each in the following funds:

1) Birla Sunlife Frontline Equity Fund - Plan A (Dividend Re-invest)
2) HDFC Equity Fund (Dividend Re-invest)
3) Reliance Regular Savings Fund - Equity Option (Dividend Re-invest)
4) IDFC Premier Equity Fund (Growth)

I need to invest Rs. 2000 more as SIP. Can you please suggest me a good fund with consistent performance? Please note:

1) I do not want to increase my exposure into any of the existing SIP funds.
2) AMCs that I trust on are Birla Sunlife, DSP Blackrock, HDFC, Reliance, Sundaram BNP Paribas, ICICI Prudential.
3) My investment horizon is for a period of no less than 10 years.

Thanks in advance....
Manish

 

[yodlee99]

You have 8k per month in SIP in 4 funds and have 2k pm more to invest.
Lets analyze your existing portfolio: #1 is large cap, 2&3 are more of a multi-cap while #4 is a mid&small cap. As such you have more investments in midcap. When the markets go down, it pulls with it all the midcap stocks and may seriously affect the overall returns of your investments. I would urge keeping a large cap tilt irrespective of your SIP amount and less number of funds also. Why less number of funds? Consider a scenario when there is a rally in say, for ex. banking stocks. If your investments are too-diversified, the net effect will be minimal.
On the other hand, if you have 2 or max of 3 equity-diversified funds with a large cap tilt, for a total of 10,000 Rs SIP every month, you will see better returns. Assumption: You continue the investments for 10 years+ (5 yrs at the least), irrespective of the markets up or down.

I would suggest, against what you intended, to consolidate your savings in just 3 mutual funds in Growth & SIP on different dates of the month. With minimal alterations:
1) Birla Sunlife Frontline Equity Fund - Plan A (Change to Growth) - Largecap
2) Switch HDFC Equity Fund to HDFC Top 200 (Growth) - Largecap
3) Reliance Regular Savings Fund - Equity Option (Change to Growth) - Multicap
Drop #4. Check with others.

 

[milind]

All you current investments look good. I am assuming you have sufficient debt exposure. I would suggest HDFC Top 200 or DSPBR Top 100 for a new SIP.

-- Milind

Hello,

This is my first post in this forum. I have been investing in mutual funds since 2007, both as lumpsum and through SIPs. Currently, I invest Rs. 2000 each in the following funds:

1) Birla Sunlife Frontline Equity Fund - Plan A (Dividend Re-invest)
2) HDFC Equity Fund (Dividend Re-invest)
3) Reliance Regular Savings Fund - Equity Option (Dividend Re-invest)
4) IDFC Premier Equity Fund (Growth)

I need to invest Rs. 2000 more as SIP. Can you please suggest me a good fund with consistent performance? Please note:

1) I do not want to increase my exposure into any of the existing SIP funds.
2) AMCs that I trust on are Birla Sunlife, DSP Blackrock, HDFC, Reliance, Sundaram BNP Paribas, ICICI Prudential.
3) My investment horizon is for a period of no less than 10 years.

Thanks in advance....
Manish