Split money in 2 equity funds or invest in just one?

POSTED BY roshan ON June 21, 2014 2:08 pm COMMENTS (6)

I am 38 years and have decided to enter the world of mutual funds via equity funds although I must be 10 years late.

Does it make sense to invest rs.2500 each as SIP in 2 equity funds(eg:HDFC top 200,franklin blue chip) or just invest rs.5000 in one equity fund

6 replies on this article “Split money in 2 equity funds or invest in just one?”

  1. roshan says:

    Thanks for all those who responded. For now i have invested in just one Large Cap Equity Fund .

  2. Hemanth Chandra says:

    HDFC Top 200, FIBCE are good large cap funds. Almost all large cap funds have similar portfolio.

    Checkout the portfolio overlap checker in the below link.
    http://freefincal.com/mutual-fund-portfolio-overlap-checker/

    If you compare any large cap funds, they have good amount of overalap.

    If you invest 2.5k each in two large cap funds, it won’t have much diversification.

    What you can do is invest 2.5k in pure large cap, 2.5k in a go-anywhere fund like QLTE.

  3. Sambaran Mitra says:

    I would recommend to invest in one-equity-fund. I have seen the advice that one should spread the eggs (money) in ~4 baskets (mutual funds). However I was never convinced by the thought process.
    Let that one equity-fund be a go-anywhere-fund. I mean it should not have any restrictive mandate (like bluechip/infrastructure/etc) to it. If you ask for my recommendation, I will ask you to go with Quantum Long Term Equity Fund (QLTEF).

    Sambaran
    PS: In last few posts I have recommended QLTEF multiple times. I am no-way related to Quantum management. I am one of their customers though.

  4. roshan says:

    Probably i should rephrase. which option should i follow
    a)invest in one large equity fund
    b) split money and invest in two large equity funds
    c) Split money and invest in one large equity fund and one balanced fund

  5. roshan says:

    I am looking at Large cap Funds . I am thinking of HDFC top 200, Franklin India blue chip.

  6. Hemanth Chandra says:

    Which type of fund are you willing to invest…. .large cap, small cap or mid cap….

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