I want to start sip in mutual funds...But dont know my selection is worth investing. I am 21. I have been following ur posts 1.Reliance Banking fund- Growth ----1000(I guess in future Banking is goi to increase) 2.HDFC Top 200----------------------------2000 3.Idfc small and midcap--------------------2000/ Idfc premier equity( I have confusion in selecting between these two) 4.ICICI Prudential FMCG Fund-----------2000 /SBI Magnum Sector Umbrella - FMCG Fund(once again confusion in selecting between two) 5Hdfc equity------------------------------------2000 6.Birla Sun Life Dividend Yield Plus - Growth----1000 I need your word in my selection.. dont hesitate to corrrect me
1 Answers
As you are a starter in mutual fund investment, we won't suggest you to pick sector specific mutual funds, rather you should start with diversified equity mutual funds only. Sectoral funds may generate better returns than diversified sometimes but also contains a greater risk too.
Out of the funds selected by you: HDFC Top 200, IDFC Premier equity, HDFC Equity and Birla Sun Life Dividend Yield Plus are good funds and diversified.
These funds fall into following categories:
Large & Mid Cap: HDFC Top 200
Multi Cap: HDFC Equity
Mid and small cap: IDFC Premier equity and Birla Sun Life Dividend Yield Plus
As there is redundancy in Mid and small cap, we suggest you to pick only one (IDFC Premier equity) from mid and small cap category.
We would also suggest you to add one fund from Large cap segment (DSPBR Top 100 equity, Franklin India Bluechip and ICICI Pru top 100).
You may also consider around 10% of investment into Gold based funds (ETFs if you have online trading/demat account, ele gold mutual funds).
Also, please read responses to similar questions asked earlier:
Need best suitable Mutual Funds to invest large amounts
mutual fund investment and SIP
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