I want to build big a corpus of Rs 50 lakh for my son’s future and have 18 year time line. I am investing Rs 4,000 in IDFC Premier Equity Plan A fund through SIP. Is it Ok?
- Amey Khadikar
This fund falls in the Value Research mid- and small-cap category. The fund selection is impressive and so is its performance. The performance is impressive because this fund would invest in small and medium size businesses with good long term potential, which are available at cheap valuations. The money is invested in companies that are at an early stage in their life-cycle and are at the start of a period of high growth and profitability. Further, the investments in the fund will attempt to capture shifts in the business environment with regard to new business opportunities, new technologies and new trends. And the fund has a bias towards a portfolio of companies which are going to undergo transformational changes in their business prospects. While it is good at the moment, you cannot afford to invest and forget over a 18-year time period in this fund, as is the case with any other fund. Mutual fund investing works when investments are regular and systematic. You will benefit by evaluating and tracking the performance of your fund at least once a year to take stock of its performance and make any necessary change.
This article was originally published on December 22, 2010.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
