Birla sun life midcap fund – hold or sell?

POSTED BY chvvrkch ON January 6, 2011 9:41 pm COMMENTS (8)

is it good to continue SIP in Birla sun life midcap fund plan A growth?

as it is under performer for the past 1 yr.

or is it better to switch it to HDFC midcap opportunities?

i can hold my investments for 5 to 10 yrs

8 replies on this article “Birla sun life midcap fund – hold or sell?”

  1. Actually it is confusing!
    Why financial life is not simple with YES or NO choices ? 🙂

  2. I’m not an expert and I’m not trying to answer the question, but got curious when I compared this fund in valueresearch.

    – Both funds are invested above 40% in Financial, Engineering & Healthcare.
    – BSL Mid Cap Fund has changed the Fund Managers in 2007 (Is it? )
    – BSL gave 119.79% return in 2009 while HDFC midcap gave 94.40 %
    – BSL Mid cap has out performed the Category Average apart for 2010
    – BSL expense ratio is 1.91 while HDFC midcap is 1.99
    – HDFC Midcap Redemption Time is 10 days and BSL’s is 2 Days (More liquidity? )
    – Return of BSL midcap since launch is 34.56% and HFFDC’s is 14.16%
    – Rank in category of BSL’s mid cap fund fallen from 5 to 51. Earlier lowest ranking was 25

    These are just stats, I really don’t know whether we can take decision on them. A retail/MF investor may not be able to analyse the companies on which these MFs have invested and asses, whether to stay with fund or to switch.

    Experts, please comment!

    And value research says Systematic Investment Plan is not available on HDFC midcap, there in initial investment of minimum 5000 and Subsequent Investment of 1000. Is that so? How it is different from SIP?

    1. Ramesh says:

      This probably just means that more information does not mean “better information”. 🙂

  3. chvvrkch says:

    dear ramesh,
    i want to say the same what bharat written.

    1. Ramesh says:

      As bharat has mentioned the thing. It should be “predecided” and not after the actual thing has happened.

      Overall, chasing returns is never ever going to give you benefits.

      In your case, the problem is “you chose a great performing fund” and then expect it to perform that way in future always. That is not going to happen. Even if you do or do not change the fund.
      Answer the questions:
      1. Why did I choose BSL Midcap fund?
      2. Why do I want to change my money from BSL Midcap to HDFC Midcap oppor fund?
      3. And why not any other fund?
      4. What will I do if HDFC Midcap oppor fund does not perform?

      Ramesh

  4. bharat shah says:

    i think, he , as equity mf investor, likes to remain in the investment, but ,on periodical checking. likes to reshuffle if the fund does not perform. i think , one should have some criteria for performing or vice versa. such as, for the category and the period(minimum could be year or so, as equity is for long term), it should fall first 15-20-25% age(as per your predecided criteria) funds of the category, or it must gain at least 85%-80%-75% than the best in the category

  5. Ramesh says:

    It is difficult to understand these 2 inherent contradictory statements:
    1. This fund is an underperformer since last 1/2/3 years.
    2. I can hold investments for 10 years.

    Only one of the two can hold at a time. It is difficult to provide a proper answer in this respect!
    😉

    Ramesh

  6. rakesh says:

    Birla Sunlife has been an under performer since the crash of 2008. I had invested in and it tested my patience. Finally I decided to move over to DSP Eq fund and have earned decent profits, all my loss has been recovered.

    Rakesh

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