New SIP in small cap fund or Step-up current SIPs ?

POSTED BY finnaive ON June 9, 2014 9:17 am COMMENTS (2)

Hi

I have the following SIPs running with an amount of 5000/- every month. I can put in another 3-4K every month, so I am confused between starting a new SIP in probably in a small cap fund or increase the existing SIP amounts. Here are the existing SIPs

1) HDFC Top 200 – running for last 2.5 years

2) Franklin India Bluechip – 14 months

3) Quantum Long Term Equity – 11 months

4) SBI Emerging Business – 6 months

I can either increase SIP amount by 1000 in each fund, or start a new fund. Please suggest

Thanks

Finnaive

2 replies on this article “New SIP in small cap fund or Step-up current SIPs ?”

  1. finnaive says:

    Hello Hemant
    Thanks for your reply. Yes, I am aware that my foio is inclined towards big caps, hence I wanted to add a small cap for diversification.

    Whats your thought on Franklin Smaller Companies in Mid Cap category??

    Thanks
    Finnaive

  2. Hemanth Chandra says:

    Your portfolio is more inclined towards the large cap funds. Try the comparison tool in the below link.

    http://freefincal.com/mutual-fund-portfolio-overlap-checker/

    If you try to compare the first 3 funds, there will be a good amount of overlap which means it is not that diversified. If you wish to take less risk and continue in large cap, then you can continue in the same funds.

    If you wish to take a bit risk, you can invest the extra 3-4k which u are willing to do now in the ‘PPFAS Long Term Value Fund’ which is a good mid-small cap fund with value investing.

    Let me know if you need any clarification.

    PS : This is my opinion and I am not promoting any product.

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