Please comment on Mutual fund selection

POSTED BY Sachin ON December 31, 2012 9:24 pm COMMENTS (5)

I am going to invest 10,000 per month in MF. I have shortlisted below 10 funds by doing some research on valueresearchonline.com. i am planning to start SIP of 1,000 per fund per month.

please let me know what you think.

 

 

 

Quantum Long Term Equity Large and mid cap
UTI Opportunities Large and mid cap
ICICI Prudential Focused Bluechip Equity Retail Large cap
Franklin India Bluechip Large cap
BNP Paribas Dividend Yield Multi cap
ING Dividend Yield Multi cap
HDFC Balanced Balanced
IDFC Premier Equity Mid and small cap
SBI Magnum Emerging Businesses Mid and small cap
Birla Sun Life MNC Other

5 replies on this article “Please comment on Mutual fund selection”

  1. Anshuk Jain says:

    Also you can wait for direct plans to come out and directly start your SIP in them..

  2. Sachin says:

    Thanks pattu. Your step by step guide for choosing mutual
    fund is very helpful!!

  3. primarily a question of management. You could use several funds provided they invest in different stocks. This is not true of most of the fund you chose. Overdiversification is not diversification and returns will match market returns.

    Fewer funds beat market returns much better.

    You could go with what you have chosen provided you monitor regularly know what your expected return is and rebalance each year to stay on course.

    Some would say still too many funds but if you are comfortable go ahead.

  4. Sachin says:

    What do you think about below distribution? i do not understand the rational between investing in few funds even if we are investing in the good funds. even if we select top funds we never know which one will perform better.

    2000 Quantum Long Term Equity Large and mid cap
    2000 Franklin India Bluechip Large cap
    2000 BNP Paribas Dividend Yield Multi cap
    2000 HDFC Balanced Balanced
    1000 IDFC Premier Equity Mid and small cap
    1000 Birla Sun Life MNC Other

  5. All funds are good but too many of them.

    You could choose two large cap funds (FI blue chip and QLTE (low expense ratio))
    and two of your mid- small-cap funds,
    put 60-70% (of your equity component) in large caps.

    This is just one way to do it, I am sure there are other ways. Some prefer one large-cap and one mid-cap. that is also find but I would like a little spread in my eggs.

    this is assuming your goals is quite far away (more than 5 years). please monitor periodically and rebalance your equity and debt component (which is of course not part of this list) each year

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