I started investing Rs 1,000 a month each through SIPs in HDFC Top 200, Reliance Regular Equity and Rs 2,000 in Fidelity Tax Advantage. I want to invest in more funds, please suggest what fund to invest in?
- Hemant Kawadkar
Investing in mutual funds through SIPs is a great way to wealth creation. And, your choice of funds is also good. However, you need to have a clear plan when investing in mutual funds. For instance, HDFC Top 200 is a large- and mid-cap fund, Reliance Regular Equity is a multi-cap fund and Fidelity Tax Advantage is an ELSS. Each of these has different investment objective and a place in your portfolio.
An ELSS will help you save tax and also build a corpus. A large- and mid-cap fund will comes with the potential to go up faster, whereas a multi-cap fund is a hedge in volatile times. Adding more funds to your portfolio will be only if there is a need for other type of funds. If you have additional funds to invest, you can consider investing in any or all the existing three funds that you have.