I am investing Rs 2,000 a month in SBI Magnum Global fund (G), SBI Magnum comma fund (G) and SBI Blue chip fund (G) since 2008. I now want to increase my investment by Rs 10,000 a month. Please suggest the MF's I should choose
You have a portfolio bias towards one fund house, which does not augur well as in doing so, you lose opportunity of investing in a better performing fund in the same peer group. Despite such a move, the power of SIP and compounding has done its job. Your investment of Rs 1.5 lakh in the past two years has had an unrealized gain of Rs 87,290 or 50% gain. Had you selected the better funds in the category; you could have had a far higher gain.
With the additional surplus of Rs 10,000 that you wish to invest; look for funds that have a large cap and large- and mid-cap focus such as DSPBR Top 100, HDFC Top 200, IDFC Premier equity and Birla Sun Life Midcap funds to invest in. This way you will earn better than what you have managed in your current portfolio.