Fund Removal

POSTED BY Sharmi ON May 2, 2011 4:18 pm COMMENTS (4)

Which fund do you think I should get rid of?

Fund (All Growth)            SIP
DSP BlackRock Equity-Regular 3000
Reliance Regular Savings Equity 6000
Fidelity Equity Fund  5000
HDFC Top 200 Fund 6000
IDFC Premier Equity Plan A 5000
ICICI Prudential Discovery Fund 1000
HDFC Prudence 3000
FT India Balanced Fund 2500
Benchmark S&P CNX 500 Fund 3000

I am investing from 2005 in Fidelity, FT, Top 200 and rest are just one year old. Earlier I had too many funds (18) and I removed most of them. In next 6 months I’ll redude my SIP to 30K and continue for 8 to 10 years.

Thanks for your time.

Sharmi

4 replies on this article “Fund Removal”

  1. Fidelity Equity Fund generally invests in large cap fund like Reliance, ICICI, TCS, HDFC etc. and your other funds like HDFC Top 200, DSP Blackrock Equity Fund also invests in same category of stocks. So, there is no point of duplicate funds in the portfolio.

    Hope it will help you.
    InvestmentKit.com

  2. Sharmi says:

    Dear MoneySaving,

    I am going through different fund documents and I understand your point. Does the Fidelity Equity is duplicate of some other fund of mine?

    Anyway thanks for your time.

    Regards
    Sharmi

  3. There is no point of holding funds with same equity exposure. Also, for long term, I don’t see any logic in defensive action, So, I would recommend to remove the following funds.

    HDFC Prudence Fund
    Fidelity Equity Fund
    FT India Balanced Fund
    Benchmark Fund

    Add this money to other existing fund.

    Hope it will help you.
    InvestmentKit.com

  4. Ramesh says:

    Keep the largest 2/3 and remove others.

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