Since January 2017, I have been investing Rs 2,000 per month in each of the following funds: SBI Blue Chip, DSP BlackRock Micro Cap, DSP BlackRock Tax Saver and Mirae Asset India Equity. These funds have fared quite poorly. Should I switch to other schemes?
C.R. Chandrasekar CEO and Co-Founder, FundsIndia.com replies: You hold good schemes. SBI Blue Chip slipped in 2018 but is recovering now. Avoid further exposure to DSP Micro Cap and continue with DSP Tax Saver only if you need to save tax. Consider Parag Parikh Long Term Equity, if you intend to raise your SIP investment. The problem does not lie with your funds. The markets moved up in 2017, but fell in 2018, which explains the poor returns. Keep the SIPs going and you will get good returns.
I am 50 and my spouse is 45 years old. We have been investing via SIPs in the following funds for the past few years: Rs 15,000 each in SBI Blue Chip, Motilal Oswal Focused 35 and Aditya Birla Advantage; Rs 20,000 in Franklin India Smaller Companies, and Rs 10,000 in Invesco India Contra. We intend to continue to investfor at least 10 years. Should we make any changes?
Naveen Kukreja CEO and Co-founder, Paisabazaar.com replies: You should continue with the existing funds in your portfolio, barring Aditya Birla Sunlife Advantage. This fund belongs to the large- and mid-cap category. Funds in this category are required to invest at least 35% of their corpus in both largeand mid-cap stocks.
Since you already have a significant exposure to the large-cap segment through SBI Blue Chip and Motilal Oswal Focused 35, it will be advisable to increase your exposure to the mid-cap category by investing in a pure mid-cap fund. If you choose good mid-cap schemes and remain invested for the long term, your portfolio return could be higher. You may consider investing in any one of the following mid-cap funds: L&T Midcap, Axis Midcap and HDFC Midcap Opportunities. Invest in the direct plan of the chosen fund as these have lower expense ratios than regular plans.