I am an avid reader of your website (www.valueresearchonline.com), which gives a lot of details & necessary information to investors like me. I want to invest Rs 3,000 in three mutual funds via SIPs (Rs 1,000 each). I have shortlisted a few funds: Sundaram BNP Paribas S.M.I.L.E. Reg, Reliance Regular Savings Equity, Magnum Contra, HDFC Top 200 & UTI Opportunities. Can I opt for the first three funds mentioned above, or do you want to suggest some other funds?
-Hemant
Sundaram BNP Paribas SMILE Reg and Reliance Regular Savings Equity are 5-star rated funds. They both invest heavily in mid-cap stocks. Having two aggressive funds would make your portfolio too risky. So, choose to invest in any one of these two funds.
Magnum Contra is a good 4-star rated fund. HDFC Top 200 and UTI Opportunities are 5-star rated funds with an impressive track record. You may choose to invest in any of these three funds.
This article was originally published on March 17, 2010.