Need Advice for SIP in Mutual Funds

POSTED BY KUNAL GERA ON December 24, 2012 5:36 pm COMMENTS (14)

I want to invest 50000 p.m. in mutual funds thro’ SIP and want to start 5 SIPs of 10000 each. According to current returns, I have shortlisted the following funds:

1. ICICI Bluechip focused

2. SBI Emerging business

3. ICICI Pru Banking and Financial Growth

4. IDFC Premier equity

5. ICICI Pru Discovery / Reliance Equity Oppurtunities Fund

Can anyone please suggest if my selection of funds is ok or suggest better funds.

14 replies on this article “Need Advice for SIP in Mutual Funds”

  1. V. Sudhakar says:

    Hi, I am 31 years old private employee. I have not invested in mutual funds till last year, then I researched and invested in ELSS (Axis long term regular) -45k.
    This year I am planning to invest in below fr 5-10 years.
    A.Mirae emerging bluechip – 2000
    B.Kotak Select Focus – 2000
    C.Franklin smaller Companies – 2000

    Also Birla tax relief plus DSP black rock tax saver for my elss around 80000.

    Kindly clarify on whether my choices are good fr first time investor who is ready to take risk as well.

    1. These are all very good funds. Just see that they are aligned to your risk appetite or not !

  2. ashalanshu says:

    Dear Abhishek, please continue in the existing 3 funds. In case you can increase the amount, please invest more.

    Thanks

    Ashal

  3. Abhishek Gupta says:

    Hello,

    Please review and suggest changes (if needed) to my below funds. I am investing a total of 10k per month in these funds together.

    1. Quantum Long term Equity Growth –> Weekly SIP of Rs 1500. Total of 6k per month.

    2. ICICI Prudential Focussed bluechip Equity – Direct Plan – Growth Option –> monthly SIP of Rs 2000

    3. Mirae Asset Emerging Bluechip Regular – Direct Plan – Growth Option –> monthly SIP of Rs 2000

    One specific area where I need help is to decide one mid cap fund between “Mirae Asset Emerging Bluechip Regular” and “HDFC Midcap Opportunities”.

    All the help is appreciated. Thanks in advance.

  4. Atul says:

    Hi Kunal,

    You have not mentioned your purpose or the horizon. I suggest decide on the horizon for investing and select appropriate funds. Secondly distribute the SIP amount amongst funds from different AMC. For example. Franklin, HDFC, ICICI, DSP etc. Also check the portfolio of stocks owned by this funds. Sometimes there is crossover for example, ICICI bank is hold by most of the large cap funds. If you SIP into 2 or more large cap funds then there is risk of too much exposure to one stock. Lastly.include balanced funds in your portfolio.

    Regards

    Atul

  5. 3sharad says:

    Hi Kunal,

    I would suggest 4 funds, a bucket of 5 might be unnecessary.

    You can invest 15-15-10-10k in the following respectively:

    1. ICICI Pru Focused Bluechip Equity Fund (Largecap)
    2. Canara Robeco Large Cap Plus Fund (Largecap)
    3. Mirae Asset Emerging Bluechip (Midcap)
    4. SBI Magnum Global Fund 94 (Midcap)

    The advise is based on measurable quantitative and qualitative parameters scored via performance attribution analysis and goes much beyond the top level NAV based risk-return rating.

    You can look at http://www.thefundoo.com/Fundoscope_app.aspx for detailed funds’ analysis.

    Hope this helps.

    Regards,

    Sharad
    http://www.thefundoo.com

  6. 3sharad says:

    Hi Kunal,

    You can spread it as 15k, 15k, 10k, 10k in the following funds respectively:

    1. ICICI Pru focused blue chip equity Fund (Largecap)
    2. Canara Robeco Large Cap Plus Fund (Large cap)
    3. Mirae Asset Emerging Bluechip Fund (Midcap)
    4. SBI Magnum Global Fund 94 (Midcap)

    The advise is based on analytics of measurable quantitative and qualitative parameters. The analysis goes beyond top level NAV based analysis and discovers the true style and performance of portfolio managers.

    You can refer http://www.thefundoo.com/Fundoscope_app.aspx for an analysis of mutual funds.

    Regards,
    Sharad

    http://www.thefundoo.com

  7. sainath says:

    HI..I would strongly advise you to have exposure in Banking sector. Normally people here would advise you against investing in sector oriented Mutual fund because of concentration risk, but having worked in equity research analyst Banking sector, i predict banking to outperform all the other sectors including consumers in the next 10 years. Its upto you to decide.

  8. Sorry. I meant review each year

  9. Yes it is good. But you need to review performance each to see if it on track and change if some funds underperform consistently

  10. KUNAL GERA says:

    Thanks for ur suggestion Free financial. I was going thro’ form and changed my picks a bit.

    Do you think QLTEF: 30000, ICICI Bluechip: 10000, IDFC Premier Equity: 10000 will be a fair idea for long term (10-15 years)

  11. Assuming 50000 is only your equity component and that you have a separate debt component for your financial goal,

    about 70% could be divided equally among the large-cap funds and rest divided equally between the small- and mid-cap funds.

    If you dont have a debt component you will need to allocation a portion of money towards this. How much will depend on when you need the money

  12. KUNAL GERA says:

    Thanks for your quick reply … even I want to keep my portfolio simple enough to monitor it with ease, so from the long term perspective how shall I divide 50000 p.m. how much exposure I should take in a particular fund.
    Please suggest

  13. All your choices are good. However;
    I would suggest skip the Banking fund no. 3., choose in addition to no 1 one more large cap fund like Franklin India Blue Chip. This will be your core portfolio

    2,4, and 5 are mid-cap, small cap funds. These are riskier and you should limit your exposure to them. No more than 30-40%. Just two of these should be fine.

    Some would choose 1 large-cap and 1 small-mid-cap but two in each should give a little bit of spread in my opinion

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