Long term portfolio – is it okay to replace funds between?

POSTED BY Raj ON February 12, 2013 1:55 am COMMENTS (6)

Say I’ve a long term portfolio for retirement that consist of regular SIP in Funds A and B which completed 2-3 years.

Fund A is still above average performer but I’m unhappy with service they provide. I have found another fund C which is equally good as fund A of the same Category and wanted to switch to that, what will be the best option?

1. Keep invested in Fund A without redeeming the existing units (remember I dont have any issue with returns they were able to generate but rather unhappy about the service they provide)

2. Redeem Fund A and move those funds to Fund C and also start SIP in Fund C (consider I have no tax issue in redemption)

When you stop SIP and start in other do you usually take existing investments along with you?

6 replies on this article “Long term portfolio – is it okay to replace funds between?”

  1. 3sharad says:


    It’s fine that you switch between funds.

    SIP is just intended to have an investment practice. If you already have the discipline then treat it as a normal investment which you can redeem and switch.


  2. Dear Raj, can you define this service issue?



    1. Raj says:


      One example would be, when SBI MF left my folio’s Holding mode EMPTY and because of that I am unable to transact online – I’m trying to solve this issue for months now – SBI’s stupidest online platform has validation to restrict you to performing transactions only when Holding mode = Single. I lost opportunity to invest/redeem etc on the right time. As an direct investor all these things matters, and by service issue I meant these and similar incidents from other AMCs.

      1. Dear Raj, I got your point. Please dump SBI altogether. Please transact online in HDFC, Quantum, Frnaklin, DSP, IDFC. majority of your choice ‘ll be fulfilled within these AMCs.



  3. Ramesh says:

    Yours is a meta question, with lot of ifs and buts. If you are not happy with the service (whatever that means in fund management), and there are not tax issues, then you shift completely. Whole + SIP to fund C.

    Why would you not?

    1. Raj says:

      Hi Ramesh,

      The fund A has good fundamentals and consistently outperformed index but AMC as such is disappointing, may be its about the branch I am transacting with! – FYI I’m a direct investor.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.