Can you comment on my approach for investing in Mutual funds?

POSTED BY Ravi ON December 27, 2014 11:23 am COMMENTS (2)

Dear 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



2 replies on this article “Can you comment on my approach for investing in Mutual funds?”

  1. Ravi says:

    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.


  2. Hemanth says:

    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. ?

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