I have been investing Rs 1,000/month in ICICI Prudential Infrastructure Fund through an SIP since February 2007. Though the fund has done well in the recent past, I am wondering if I should stay on with my investment or switch to another fund. I do have SIPs in HDFC Top 200, HDFC Equity and Sundaram BNP Paribas S.M.I.L.E.
- Pravin Kumar
ICICI Prudential Infrastructure is 5-star rated fund. Besides the fund being a good investment option, Infrastructure as a theme remains attractive. Stick to this fund. If you want to opt out of the Infrastructure theme, you can switch to any of the other funds you currently invest in. They command good ratings and are worthy of being held on to. While ICICI Prudential Infrastructure is a thematic fund, Sundaram BNP Paribas S.M.I.L.E. is a mid- and small-cap fund. A portfolio heavy on such thematic and sector funds will result in a lot of volatility. Such funds should not form a significant part of your investments. Limit the exposure to such funds to a maximum 20 per cent of your equity portfolio.
This article was originally published on April 19, 2010.
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