I plan to do an SIP in Magnum Contra, DSPBR Equity, HDFC Top 200, Fidelity India Growth and Quantum Equity. Your views?
- Meera Nambudiri
Your fund selection is good. If we take an overall view of this portfolio, your equity allocation is 94 per cent, the balance being in debt and cash. Though the top 10 stocks are all large caps, the mid- and small-cap allocation is around 33 per cent.
We have two suggestions here. The first being that you replace a fund that falls in the Large & Mid Cap category with a large-cap fund. Consider Franklin India Bluechip or IDFC Imperial Equity Plan A.
Secondly, why do you want to do an SIP in five funds, won't four be fine? If that is alright by you, you can drop Magnum Contra.
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This article was originally published on October 20, 2010.
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