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Rich Pickings

Investing in good fund can create wealth, a wrong choice may erode the capital

I am 28 and started investing Rs 1,000 in SIPs in June this year through three funds; DSPBR Focus 25, HDFC Equity Fund and BSL Frontline Equity Fund - Rs 1,000 PM. I plan to invest an additional Rs 2,000 in mid- and small-cap funds. Please suggest good performing funds in this category
- Badrinath K E

On analysing your current fund holdings, it emerges that two of the funds; Birla Sun Life Frontline equity and DSPBR Focus 25 fall under the Value Research Large and Mid-cap category of funds. It may be a good time to understand that you will have an aggressive fund portfolio with a mid-cap tilt. Though there is nothing wrong with it, but do ask yourself if you can stomach the associated risk, especially when you plan to invest another Rs 2,000 a month in mid- and small-cap funds. Remember, diversification strategy works well when executed with a plan in hand and not randomly.



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