I have below investments already done via SIP. However, currently I am not investing in these funds, but their units are lying in my account.
- IDFC premier equity
- L&T equity fund growth (earlier it was Fidelity equity fund)
- SBI emerging business fund – growth
I have read in one of your reply to switch MFs to another one (it was for IDFC premier equity to one of the small cap). Please suggest on my holdings for switch.
Also, my question is – What will be the implication of switch?
- Will it attract any taxation?
- Will it be one time lumpsum investment in the next fund?
- How much gap will be there to get the new fund units credited?
- All the three are equity funds. Hence, units which completed a year are tax-free. However, if you redeem units which not completed a year and there is any profit, then it will be considered for your short term capital gain tax.
- That you have to take a call based on your financial goals and asset allocation. However, if your goals are long term (more than 7-10 years), then go for lump sum.
- It depends on which mode you opt for fresh investment. But usually a buffer of a week you may consider in redeeming and re-investing process.
My horizon is long-term, so will go for lumpsum, dividing switch to start with units which completed 1 year.
I am planning to switch IDFC premier equity to Franklin India smaller companies fund. Is this OK?
Please suggest on the other two funds I have, whether they are to be switched or not. If yes, to which funds?
I have below mentioned active investments in SIP:
DSP BLACKROCK SMALL and MID CAP FUND – REGULAR PLAN – GROWTH
HDFC TOP 200 FUND – GROWTH PLAN
ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth
I don’t know your financial goals and the asset allocation you are following, then how can I blindly suggest any fund?
I will stay invested for minimum 10 years. I have term insurance, emergency fund, PPF in place. I follow 65:35 Equity:Debt investment ratio. Please suggest for the funds I have stopped investing (IDFC premier equity, L&T equity growth, SBI emerging growth), if switch is required and to which funds. And your view on funds where I have active investments (DSP BLACKROCK SMALL and MID CAP FUND GROWTH, HDFC TOP 200 FUND – GROWTH PLAN, ICICI Prudential Focused Bluechip Equity Fund Growth).
Why can’t opt a single equity-oriented balanced fund than this cumbersome exercise?
Just not to have my entire investment in single fund house MF. I want to keep my investments in 4-5 MFs. Also want to invest portion of SIP in high risk- high return MF. Please suggest if my thinking is not on right track. If you would suggest single balanced fund, which would it be? And would you suggest to switch my current portfolio to that single fund?