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.
This article was originally published on December 22, 2010.
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