MF Investment System

[Vicky78]

Hi Ravi,

IF we take a look at the midcaps there are sbi global, sundaram midcap, jm emerging leaders and reliance growth. In this case instead of getting superior return from 1 fund (from the list based on one year return it is reliance growth), we are diluting the returns by splitting money across 4 funds. The returns are now averaged across all 4 funds. Hence the midcap section of the portfolio is less focussed.

Again there could be a point that the risk is minimized by splitting across 4 funds. But my personal take would be using another midcap fund to hedge the risk of another midcap fund may not work out very well. Debt funds would be a better choice to minimize the risk.

From these four mid cap funds it will be easy to pick one based on the risk appetite of the individual as all these four funds are extremely good funds.

Low risk low return: sundaram midcap
Moderate risk average return: Magnum global/ Reliance growth
High risk - High return: JM Emerging leader -bad past performance (hence high risk) but Sandip Shabarwal has been turning around this fund in a big way and the fund tops the list in the 6 month return. Sandip Shabarwal was the head of equity in SBI where he totally changed the face of SBI magnum. His abscence has been felt on the performance of SBI funds. But there was some SEBI inquiry on Sandip Shabarwal regarding his trading practises(not sure if the enquiry is over)

Sundaram midcap has slowed down a bit since the fund manager anoop bhasker left them. He is now the fund manager for UTI Midcap.

Anyways everybody has there own style of investing and that investment style works best for them! I wish your approach works best for you.

Cheers!