POSTED BY March 27, 2014 1:55 pm COMMENTS (8)ON
I want to invest in midcap funds for long term and I have other SIPs going on for diversified large cap funds. I have seen IDFC premier equity fund performing well across time frames. So, thought of investing in that fund. However I want to take help from the experienced guys to double check my decision on going for a single fund in that category or multiple funds with similar investment mandate.
My question is “Shall i do a SIP in one fund for 5K or split the amount into top 3 funds with 2K,2K and 1K ratio?” which one do you think will be beneficial in long run say 10 years. I have been investing in direct funds till now and will invest in direct mode only in future as well.
As I have seen there is no guarantee for future performance for any fund, why should I go with a single fund and be at risk, instead i can go for top 2-3 funds and diversify the risk in that category. Managing funds is not a problem for me, as i use perfios money manager auto-update functionality to have all funds at a single place.
Is my understanding correct or are there any flaws in it. Please guide me.
Thanks in advance,