SBI Emerging Business and other mutual fund Performance Review

POSTED BY nitin1001 ON January 29, 2014 4:50 pm COMMENTS (10)

Dear Friends,

Based on suggestion from this forum, last year I had invested in mutual funds as a long term investment in below funds:

1. Franklin India Bluechip fund (G) [2700 monthly]- Annual return (2013) is  4.22%

2. HDFC Equity Fund (G) [3600 monthly]- Annual return (2013) is  6.43%

3. SBI Emerging Business Fund – Reg (G) [2700 monthly] – Annual return (2013) is  1.42%

Questions:

1) As you can see, return of SBI Emerging Business is not good, so I want your suggestion on this, should I continue to investing in same fund via SIP or switch to some other fund. Please suggest the alternate option.

2) Is Fund allocation in above three funds are okay or any switching required?

3) If I want to invest another 5000 per month, where should I divert it in above funds or should I invest this in some new fund?

Declaration:

1. Already have one Term Insurance (1 Crore)

2. Already have PPF investment (5000 monthly).

3. Investment in Mutual funds (SIP) is for long term goal.

Many thanks in advance.

10 replies on this article “SBI Emerging Business and other mutual fund Performance Review”

  1. ashalanshu says:

    Dear Nitin, in the light of the added info, please continue with all the 3 funds and add the money into same funds if you want to increase your mly investmets.

    Thanks

    Ashal

  2. nitin1001 says:

    Dear Ashal,

    Here is dept position:
    1) Having PPF investment (5000 monthly), started last year.
    2) PF account with my company (around 3000 per month my share.)
    3) Emergency fund around 50K – 100K (in bank account).

    Along with this I have health insurance for myself and family provided by company.
    I don’t have any investment in Gold.

    Please advice if anything need to add.

    Regards,

  3. ashalanshu says:

    Dear Nitin, what is the debt position of your portfolio i.e. PF, PPF, FDs etc.

    Thanks

    Ashal

  4. nitin1001 says:

    Thanks Ashal.

    One more question, as my financial portfolio details are already available in question section, is there anything I need to add it on my financial portfolio?
    Please suggest if anything missed out.

    Regards,
    Nitin

  5. ashalanshu says:

    Dear Nitin, please continue in same funds with same amount as well as for increased amount also.

    Thanks

    Ashal

  6. rahul123 says:

    Dear Nitin,

    Don’t alter the decision based on the performance of 1 year.

    Think of switching the fund in following case-
    1. If you are getting negative return over 6 quarters out of 12 quarters (i.e. 3 years time)
    2. Fund is under performing the benchmark consistently (or less than your target return)

    Out of your above investments (as of now ) PPF gave best return, so please increase (monthly) ppf contribution by 2k, and invest 1k in each of the above mentioned fund. It will make your investment more balanced.

    Thanks,
    Rahul

    1. nitin1001 says:

      Thank you Rahul for your suggestion.

      Is amount allocation is fine in all these three funds for long term or should I increase/decrease amount in-between these funds?

      Regards,
      Nitin

      1. rahul123 says:

        Amount allocated is ok, as suggested by Ashal you can keep the amount in same proportion.

        Thanks,
        Rahul

  7. ashalanshu says:

    Dear Nitin, if the investments are meant for long term, why are you worried for such short term performance. let it continue in all the 3 funds. Please invest the new 5K amount also in the same 3 funds.

    Thanks

    Ashal

    1. nitin1001 says:

      Dear Ashal,

      Thanks for your reply.
      Actually at the time of investing, my first choice was ‘IDFC Premier equity ‘ but due to some technical constraints, I had chosen ‘SBI Emerging..’ fund.
      That’s why wanted to know should I switch to IDFC Premier …to stick to SBI Emerging…. for some more time.

      Regards,
      Nitin

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