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
Regards,
Ravi