ICICI Prudential Bluechip Fund: Rs 1,000
Canara Robeco Emerging Equity Fund: Rs 1,000
HDFC Hybrid Equity Fund: Rs 1,000
Standard Flexi Cap Fund Box: Rs 1,000
I am planning to invest for three to five years. Have I selected good plans or should I make changes?
–Suhas e Magdum
Jujar Gabajiwala, Director, Mutual Fund Research, Mumbai-based Ventura Securities, replied:
The number of schemes in your portfolio is high and each fund has only Rs 1,000. With your current SIP amount of Rs 4,000, it would make sense to have only two plans. Also, if the horizon for SIP is three years, then your average investment tenure is only 18 months or 1.5 years as the money is invested evenly from the 1st month to the 36th month. Whenever one does a SIP in an equity oriented fund, an average investment tenure of at least five years (SIP duration should be 10 years) is preferred to avail the benefits of compounding. So try to take maximum advantage of SIP.