Hope you are doing well and thanks for this providing this platform.
I have started SIP since March 2014 in the following;
- HDFC Balanced Fund(G)-2k
- ICICI Prudential Focussed Blue Chip Equity Fund(G)-3K
- IDFC Premier Equity Fund – Regular(G)-4K
- UTI Opportunities Fund(G)-3k
I made this MF portfolio keeping 15-20 years in mind for investment with expectation of 15% CAGR. But I see apart from HDFC Balanced fund, all funds are not performing well. Both the large cap shows 17% CAGR since inception, which reduces my worry. But my mid cap fund is also doing not so great. Shall I change IDFC Premier Equity Fund with Mirae Asset Emerging BlueChip Regular(G) as this is showing best return when compared for last 5 years return. Please suggest.
Saikat-Your view is 15-20 years and you started to worry within few months exactly like typical retail investors. Give time to your investments. Funds invested are good and continue. No need to suddenly switch based on star ratings or some hype in market. Review once in a year and manage debt:equity at 30:70.
Thanks for your comments. I got worried about IDFC Premier Equity as its return is very less with compare to peers and even it is not listed in your top 10 MF for 2015. So I had this doubt.Yes, I maintain 30:70 ratio yearly (have PPF account for tax). Last year when I started UTI opportunities fund, it wasn't large cap then, but this year it has become large cap fund. So I was thinking whether it is a good idea to keep investing in 2 large cap funds. Anyway, thanks a lot 🙂
Saikat-Don’t compare peers. Instead, if the fund is continuously underperforming it’s benchmark then you have to think. So continue investing in IDFC. I know it is not a good idea to have two funds within a category. Think of it while your next portfolio review also check for overlap of portfolio among two large caps and then take a final call.