SIP – Inputs/Advice required

POSTED BY visasubu ON May 19, 2012 12:42 am COMMENTS (4)

Hi ,

I have been investing in following SIPs

Fidelity Equity Fund – Past 1 year- Monthly 9000 Rs
Birla Sun life EQuity Fund – Past 4 years – Monthly 2000 rs .( Stopped SIP now)
HDFC Top 200 – past 4 years Monthly 3000 rs
DSP Black rock opportunities – Past 4 years – Monthly 2000rs
Reliance Growth From 2009- 2011 – Monthly 2000rs (Stopped SIP )
Kotak 50 Past 4 years Monthly 4000 rs (Stopped SIP now)

and my queries are

1) Fidelity Equity Fund has been aquired by L&T. Is it good to continue SIP ?
2) Birla SUN life Equity,Reliance Growth , Kotak 50 are not perfoming well. DO I have to wait and sell it off. Currently it is no profit no loss stage except Reliance Growth which is in -ve.
3) DSP Black rock opportunities is not perfoming off late. Is it good to continue SIP

Pl let me know your inputs/ suggestions on this.

Thanks Visa

4 replies on this article “SIP – Inputs/Advice required”

  1. BanyanFA says:

    I tend to disagree with many of the views mentioned against this post. How do you identify that the scheme is not performing as of now ? This list keep on changing month on month, quarter on quarter. So a person should keep on playing with SIPs every quarter when the advisors speak that x scheme is not performing now, lets move to y scheme.

    Unless the scheme is having some structural flaws, it makes no sense to stop a SIP into it. An example can be infrastructure mutual funds.. However, if Reliance Growth fund has not been performing for a year, it is because of its underlying shares are not performing right now. We all know that the shares / sector perform one by one. For a couple of quarters Banking would do well, then Capital goods, then Energy, then FMCG and so on. If a particular MF scheme has been overweight on a sector, and which is currently not a hot topic, doesn’t mean that the scheme is not good !

    My take – evaluate your schemes to identify if they are structurally flawed. Just because your selected scheme is not appearing in top 10 or top 20 performing schemes for the quarter / year shouldn’t force you to take this decision to stop a SIP into it. It would do more damage than preventing it.

    Regards
    BanyanFA

  2. This is what i would have done….

    i would have stopped the SIP into non performing funds. exit if the peformance is remains below par.

    Franklin India Blue Chip and IDFC premier equity.

    as you already hold HDFC Top 200 i would have not added HDFC equity. Both funds are managed by same fund manager. there would be for sure over lap of shares.

    Both fund individually are good in thier own terms.

  3. Sachin says:

    Never open more number of mutual fund accounts than you can track it with ease.
    I have seen peoples investing for tax savings and every year they will invest in new scheme/fund saying that last year they invested in X company so this time they will give a chance to Y company and then third year Z company.
    This is totally wrong. Invest based on your conviction and fund/scheme managers integrity.
    I prefer to invest only in HDFC and Franklin fund schemes.

    Just think that you are investing in 10 different schemes and this may happen in real scenario.
    Scheme 1 fund manager sells stock of say Infosys, it may happen that scheme 2 fund manager buy same Infosys stock on same day.
    So what the hell is happening here. One person is selling and other person is buying same stock by your money. And then who is paying brokerage ? YOU !!!
    And whats the gain in this to you ? NOTHING !!!
    As ultimately same Infosys stock is still in your account in same ratio and you paid BROKERAGE fees.

  4. Dear Visasubu, please switch all of your non performing funds into following 2 funds.

    HDFC Eq.

    Franklin India Blue Chip fund

    Please continue with Fidelity Eq. as of now.

    Thanks

    Ashal

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