Mutual Funds for long term

POSTED BY Sudhindra Hebbar K ON March 31, 2012 7:21 pm COMMENTS (6)

Hi Friends,
I am 30 years old Software proffessional male. I have invested 2k each on HDFC top 200 and ICICI Prudential Discovery(G). Also 1k each on HDFC MIDCAP and DSP Black rock small cap(Sorry its Micro cap fund) fund as monthly SIP. Also in Jeevan Anand 40k year. Should i continue with these fund for long term?

6 replies on this article “Mutual Funds for long term”

  1. Avoid your policy as it would give returns below inflation, we expect a return from endowment policy to be somewhere between 5 to 5.5%.

    Continue your Sip’s calmly, they would grow decently enough. Try to increase the same if you have your disposable income at place.



  2. You have right when you are investing in MF, but your fund selection are not. Your fund selection is more of Mid and Small cap.

    Go for plain venilla type. Go for Large Cap or Multi Cap funds. Top 200/DSP BR Top 100/

    Surrender the endowmen plan

  3. Yes Sudhindra

    You should be doing your SIP’s because it has potential to give you double digit returns in long term , but for endowment plan, its guaranteed that it will give below inflation returns for sure , so its not advisable to continue it , better make it paid up now


  4. Anirudha Bhadoriya says:

    Though your choice of funds is good but your portfolio lacks diversification. Three of your funds ICICI Prudential Discovery, HDFC MIDCAP and DSP Black rock small cap are mid & small cap funds. This indicates high risk factor.
    I would recommend you add one large cap fund (my suggestion would be switch from ICICI Discovery to ICICI Focused bluechip equity) & one balanced fund (HDFC Midcap to HDFC Prudence).
    Also you need to assess if your endowment plan Jeevan Anand is offering you enough life cover. Generally combination of a term insurance plan works out to be cheaper. For example you could buy a online term insurance plan for premium as cheap as couple of thousands rupees which covers your life for lakhs. The balance you could put in above mutual funds which would provide you capital appreciation in longer terms.

    1. Sudhindra Hebbar K says:

      Thanks Manish and Anirudha u mean i need to stop ICICI Pudential Discovery? I brought it just 2 days back and want to continue for atleast 3 years.

      1. Dear Sudhindra, May I ask who advised you in first place to invest in these funds & that Jeevan anand policy. Please put the reasons of your selection.



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