POSTED BY December 27, 2014 11:23 am COMMENTS (2)
ONDear Friends,
I have been investing in mutual funds (Rs. 30000 per month) through SIP since the past 18 months. I have been putting my money in one fund of each of the following fund Categories:
Equity: Large Cap,
Equity: Large and Mid Cap,
Equity: Mid and Small Cap
Equity: Multi Cap
I am going to follow the following approach, please suggest if this needs to be changed:
At the end of every one year, say in December, I am going to evaluate the performance of each of the funds. If it has performed below par than its peers OR really lagged, then from January, I am going to choose a new fund (outperformer based on performance in last 3 years) in its category and start investing in it. Only new investments go into the new fund.
Please suggest if the approach is correct
Regards,
Ravi
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Dear Hemanth,
I am investing through Direct plan of each of the funds.
Yes, that’s the approach I am contemplating. I am not planning to exit old fund. Its just that new investments go into new fund.
Thanks
if all your funds performed below par than its peers every year …. what will you do ? switch to new funds every year ?
Also, are u investing in ‘Regular’ or ‘Direct’ plan. ?