I am investing in Mutual funds through SIP for the below 2 funds and time horizon for this investment is 10 to 15 years
- ABSL tax relief 96 direct growth fund -Rs. 2000 P.M starting 2017 DEC.
- Kotak standard multi cap fund direct growth- Rs 1000 P.M from 2018 July.
I wanted to know is the above funds good and can i increase the monthly sips in above funds each 1000 or 2000.
Thanks for your suggestion in advance!
L N Sharma
You can continue the funds. However, if your goal is 15 years, then don’t invest all the money in equity products. Rather do the asset allocation of 40:60 between debt and equity from your investable amount.
Choosing the right fund is more crucial than picking the best performing funds. One needs to look at quantitative, as well as, qualitative factors when short-listing mutual funds. The quantitative aspect should cover how the fund has performed on a risk-adjusted basis (Sharpe Ratio is a good indicator) over multiple timeframes, spanning from 1-3 years, and if it has generated an above-average alpha versus the benchmark over the periods. Apart from this, one needs to look at the fund house and fund manager pedigree before zeroing on the right fund.