How to review mutual funds

[kunalp123]

Hello MF Gurus,

I have invested in SIP with the below mutual funds. I started the SIP one year ago. My age is 30, married and plan to invest for long term for child education/marriage etc (No child as of now):

HDFC top 200 - Rs. 4000 per month
HDFC Equity - Rs. 1000 pm
IDFC Top 100 - Rs. 1000 pm
IDFC Premier Equity Plan A Growth - Rs. 2000 pm
Reliance Regular savings - Rs 1000 pm
Birla Sun Life Equity - Rs 1000 pm

When I review the funds now in moneycontrol.com, Mutual Fund meter shows "sell" and two stars for Birla Sun Life, while for IDFC, Reliance and DSP-BR funds it shows "Average Buy", "Strong buy" for HDFC funds.

Kindly suggest if considering the above, should I redeem/switch the SIP for Birla for e.g. or should I consider the returns to decide this? Because the returns after one year wont give a correct picture and if currently stock market is down, returns will be low for all mutual fund SIPs.
OR should I blindly invest for 3 yrs and then decide, after checking the returns?

Kindly advice.



Thanks & Regards,
Kunal.

 

[reemak]

HDFC is always a good option in the current market. Select anyone from HDFC and Birla, don't even think of Reliance.

 

[nsuresh_rasr]

@reemak: Please dont give wrong information. It's not that all funds in HDFC is good and Brilla or Relaince is bad.

@Kunalp123: Go to http://valueresearchonline.com/ and check the ratings for your fund.

 

[shilpaks7]

kunal when you should redeem the MFs depends on what your goal is and why you were investing in MFs in the first place. if you need the money right now and if the return are as you expected them to be then redeem it but if you dont need the money right now then let it grow in MF for some more time. if its long term that you are looking at its better to leave the money in MFs....especially considering the way markets are one year may not return much.

ratings would differ from one source to another-the following would rate MFs so you could do your research in them before investing/ deciding to redeem coz what is a 5 star rated MF in one source could be rated as a sell or average in another source:

Websites
valueresearchonline
morningstar
money control

Magazines
Outlook Money

others
crisil - this rating agency has a list of MFs and their ratings on their website

 

[asterix24]

Hi Kunal,

For ratings, I would recommend Valueresearchonline as one of the right reference points. In your portfolio,

- I would recommend reviewing IDFC Top 100, as I couldn't find the same listed in VRL. Are you sure that you got the name right? Go for a large-cap like DSPBR Top100, Franklin India Bluechip, ICICI Pru Bluechip

- Instead of investing into Multi-cap funds like HDFC Equity and Reliance RSF Equity, I would recommend consolidating both of them into 1, if possible.


Happy Investing !!

 

[reemak]

@reemak: Please dont give wrong information. It's not that all funds in HDFC is good and Brilla or Relaince is bad.

Hey nsuresh_rasr,
I meant to say that few of the funds from HDFC and Birla are good, bcoz I got some good reviews on them. But with respect to Reliance, I always got some weird reviews from my friends who work in the same industry. Anywayz, thanks for sharing the information.