I am invested in six funds through the systematic investment plans (SIPs). The funds are HDFC Top 200, DSP Black Rock Top 200, Kotak 30, Sundaram Select Focus and Reliance Tax Saver. What do you make of my investments?
Your investments are good. At the moment you must be feeling good since the markets are going up, but there may be a time when markets will fall. And it will be necessary to update your investments for those times. Your fund selections are good and just make sure you don’t stop investing. These funds should give substantial returns in 4-5 years.
Sundaram Select Focus and Reliance Tax Saver are relatively new funds, but the rest of them are old funds and in the last 5 years they have managed to give returns that are nearly double that of Sensex and Nifty. And during this period the index too has given good returns. These funds generate a lot of Alpha.
Also, what is necessary is that you should not invest in any more funds. There are some interesting NFOs that are coming in the market, do not get tempted to invest there. And when you need the money, then use the systematic withdrawal plan (SWP) to exit from the fund.
What is your opinion of SBI’s Magnum Contra?
Historically, this fund has done extremely well. Though in the past few months the fund has shown weak performance; it has recently completed 10 years, and when the performance is looked over a period of time, like 3, 5 or 10 years, then it has given an excellent performance.
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