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Those who find good funds on their own need to look into another issue too

I have subscribed to two mutual funds: Reliance Regular Savings Fund and SBI Magnum Contra. I have been investing Rs 500 per month for the last one-and-half years regularly. The response has been very good and, as of now, I am in profit of around Rs 11,000. Are there any other such funds I should know about?

Both these funds are good. Also, this is a very convenient way of investing that you have done. The credit for the entire profit which you have made goes to you as you had continued investing despite poor market conditions. Our advise would be to continue in this method.

But, as far as subscribing to other funds is concerned, then we would advise that you should not add any more funds to the two you already subscribe to. There might be five-six more such funds, but saying anything on their performance in the coming days is very difficult. A more viable option is to increase the amount of investment in these two funds only. Reason thereof is that keeping a lot of funds makes it difficult to manage them. Lesser diversification is always advisable. Keep up with these funds and whenever there is a downturn in the markets, do not stop investing.

Can you name some equity funds that good performers and consistently give smart returns?

SBI Magnum Contra and Reliance Regular Savings Equity are good funds. Others can also include HDFC Top 200, Birla Sun Life Frontline Equity, and UTI Equity Fund. Amongst these five, if you choose a couple of funds and consistently invest in them, it would be good. Consistent investment is very important and even if there is a downfall in the market, one should not stop investing. Many people stop investing when markets are down. But for good results, one should consistently go on investing over the long term.

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