Please advise if I should add any further equity mutual fund schemes to my existing monthly SIPs

POSTED BY Kapil Tiwari ON January 8, 2013 4:34 am COMMENTS (11)

I have monthly SIPs in the following 4 diversified equity mutual funds:
1)HDFC Equity Fund (Growth)
2)HDFC Top 200 (Growth)
3)DSP Blackrock 100 (Growth)
4)Franklin India Bluechip (Growth)

I am investing for the long term (7-8 years).

a) Is my selection of schemes okay?

b) Should I add any additional scheme or it is not necessary? 

11 replies on this article “Please advise if I should add any further equity mutual fund schemes to my existing monthly SIPs”

  1. Kapil Tiwari says:

    Many thanks, Pattu and Ashal!

  2. Dear Kapil, Please go ahead with your planned move.

    Thanks

    Ashal

  3. Kapil Tiwari says:

    Thank you dear friends, FFC and Mr.Ashal Jauhari. I finally selected ICICI Pru Discovery since the minimum monthly SIP is Rs.1,000 (In IDFC Premier, it is Rs.2,000). Now my MF folio consists of 70% Large- & Mid-cap equity schemes. The balance 30% consists of Mid- & Small-cap equity schemes. Investments through monthly SIPs.

    Presently, I am continuing with investments through ICICI Direct for convenience and ease. The Direct Investment route requires a personal visit to the AMC, filling up of a physical form, initial issuance of the first SIP cheque and insignificant personal service. Of course, we have the option of taking the direct route even subsequently, even in the existing SIPs taken through brokers as well, if we observe a significant difference in the NAVs of the direct and the regular plans. So we can wait and watch!

    With warm regards, Kapil Tiwari

    1. Dear Kapil,

      Good luck. For many AMCs you just need to get a pin to get a account online after which you can map your existing folios in the account and make the switch to direct schemes yourself. This involves sending a form to their office or this be done online. So you could consider that.
      The difference in NAV will take a few years to become significant.

      Pattu

  4. Dear Kapil, out of the 2 funds quoted by you, I w’d like to go with IDFC. in case you want to go with direct plan to save on costs & thus getting higher return than normal plan, please contact IDFC to activate your personal direct online investing there.

    Other things already discussed by dear FFC, hence not elaborating more.

    Thanks

    Ashal

  5. Kapil Tiwari says:

    (A) If among the small- and mid-cap funds, that you have suggested, which one of the two should I choose:
    1) ICICI Prudential Discovery
    2) IDFC Premier Equity Plan A
    I am 51 years old, not at ease with numbers and hence would prefer least possible monitoring.

    (B) Furthermore, I have been investing via monthly SIPs through ICICI Direct. Can I subsequently, switch mid way to the Direct Plans being offered by the Mutual Funds w.e.f. 1st January 2013, even in case of my current SIPs being executed through ICICI Direct? Will I be able to use my current ICICI bank savings account and ICICI bank demat account to invest in these Direct Plans?

    Thanks and best regards, Kapil Tiwari

    1. (A) both funds are quite good. However whichever fund you choose you need to monitor at least once a year at the minimum.

      periodically book profits and as your goal approaches (2-3 years) pull them out of these funds and decrease your overall equity component gradually.

      (B) If you switch to direct plans your broker will no longer receive commissions. Therefore it is unlikely you can invest in direct plans through ICICI direct (please check with them to confirm).

      You will need to open an account with respective AMCs to do so. Please read switching details carefully.

      Pattu

  6. it is true DSP top 100 has been sluggish of late but I think it would be prudent to wait and watch (i am also invested and I intend to do the same)

    DSP top 100 reg. is suitable for retail investors

    top 100 inst has no SIP option and has min invest of 1,00,00,000!

  7. Dear Kapil, please do not worry for ratings every time. If the fund in question is able to perform as per your expectation, no reason to worry.

    Please consolidate your existing funds within 2 funds & then add IDFC Prem. Eq.

    Thanks

    Ashal

  8. Kapil Tiwari says:

    Thank you! I was concerned because the star ratings given by some of the magazines like Outlook Money and Value Research were not good. In fact, Outlook Money gave only 3 star ratings to DSP BR Top 100 and Franklin India Blue Chip. When I had started my SIPs a year ago, all the 4 schemes had 5 star ratings either from Outlook Money or Value Research.

    I have noted to add one small- and mid-cap scheme to my portfolio.

    One more question. I am confused between DSP BR Top 100 Regular and DSP BR Top 100 Institutional. They have different NAVs and different star ratings. I have been investing in the DSP BR Top 100 ‘Regular’ scheme. Hope I have made no mistake.

    With kind Regards, Kapil Tiwari

  9. All your fund are good

    HDFC equity and top 200 are quite similar funds. In principle it is enough if you have only one of them
    HDFC equity is a bit more riskly than top 200 but both are good.

    You could add one small- and mid-cap fund to add some kick to your portfolio

    some choices are
    IDFC Premier Equity
    ICICI Prudential Discovery
    HDFC Mid-Cap Opportunities
    SBI Magnum Emerging Businesses (has high expense ratio)
    and one of them should do
    invest 20-30% of total contribution in any one of these
    note they are more risky than your present funds

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.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today