SIP in HDFC Top 200 (G) , FT India Bluechip (G)

POSTED BY investor ON September 1, 2013 6:37 pm COMMENTS (4)

 

Hi,

I have been investing 5000/ p.m. each for the 2 funds ( HDFC Top 200 G and FT India Bluechip G), since almost the last 1 year. My initial horizon for these was long term 8-10 years. I see the fund has not been doing well off-late , specially last month. Do you think I shall still continue the SIPs in these 2 funds ?

Or should I consider moving to any other better performing funds ? Will you have any suggestions in that case? The time line am looking is around 10-15 years..

I ask the question since I see MoneyControl has made HDFC Top 200 – 2* and Value Research 4-*.

Please do suggest. It will help if you can share your thoughts on deciding when to switch from a fund (say hdfc top 200 for ex).

If I can invest around 20k per month, for long term (10+ years), which funds will you suggest at the moment.

Thanks.

 

4 replies on this article “SIP in HDFC Top 200 (G) , FT India Bluechip (G)”

  1. Kuntal says:

    @ investor,
    Please understand that NAV of mutual fund is not like the price of a share- undervalued or overvalued. If at all, a fund with higher NAV signifies that it has been around for a long time (ie time tested). So dont look at NAV to discard or purchase a fund.
    Instead look for:
    1. Process driven quality fund house with long time fund management team.
    2. Relative performance vis-a-vis its peers (dont look for top rankings; only consistency in perfomance).
    3.Low Expense ratio.
    4. Low portfolio churning.
    Franklin india bluechip, HDFC top 200 fits all of the above.
    I am confident (not sure) that these funds will deliver over a full market cycle.
    So continue in them, dont invest in more than 3 funds total (though I have 4).
    You may go through all old fund related queries in this forum. Veterans like Ashal have often explained such queries.
    Hoping that you wii revert back with your inputs and I am sure you will be enlightened
    once you go through all old MF questions.
    Thanks,
    kuntal.

  2. Dear Investor, you mean to say a 15 Rs. NAV fund w’d have a better chance than 200 Rs. NAV fund to perform from here onwards?

    thanks

    Ashal

  3. investor says:

    Thanks Ashish. I understand your view.

    One point that I have been thinking though is, that the current NAV of both these funds are now at a high level ~200, so will there be some sort of saturation leading to not so good growth in future… what’s your thought on this ? In this sense are funds with lower NAV better ? ( for example Quantum Long term Equity..)

    What about HDFC top 200. What other funds you will suggest on a long term basis..

    Thanks a lot.

  4. Ashish Garg says:

    Hi Investor,

    One year too short a period for equities to give you good returns, unless markets are going positive. You can see that in last 12 months or so, how the markets have behaved and it is very unlikely for a diversified equity fund to yield results.

    I myself have invested in FT Bluechip and still continuing because I now this fund has performed well in past and shall improve in future.

    Ashish

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