I plan to invest Rs 6,000 via monthly SIPs over 20 years. What do you think of my selection: HDFC Top 200, HDFC Equity, BSL Frontline Equity, IDFC Premier Equity and Reliance Regular Savings Equity? How important is the size of the fund? Does a big size hamper the performance of the scheme?
- Abhijit<p>
Good selection. But do you really need to invest Rs 6,000 in five schemes? Instead, consider four schemes with a monthly SIP of Rs 1,500 in each. You have two schemes from HDFC Mutual Fund, drop HDFC Equity.
As far as size is concerned, it really does not matter in the case of a large-cap fund. However, in the case of a mid- and small-cap fund, a smaller size is an advantage since it gives the fund manager flexibility to move in and out of smaller cap stocks. The actual size which would give the fund manager comfort is more a subjective issue.
| |||||||||||||||||||||||
This article was originally published on June 24, 2010.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
