I am 31 and want to invest in HDFC Top 200, ICICI Pru Discovery, UTI Banking, Reliance Pharma and HDFC Infrastructure through Rs 1,000 SIP. Is this okay?
— Soumya
You have selected 5-star funds such as HDFC Top 200 a large- and mid-cap fund and ICICI Discovery, which is a mid- and small-cap fund. Both these funds have proven track records and performance history which should help your investments. However, your selection of a pharma, banking and infrastructure fund is a bit confusing. Thematic and sector funds work well when these match the need to emphasise the bias that the sector or theme brings into your overall portfolio. Investing through SIPs in these funds is best avoided. Stick to broad equity funds with large- and mid-cap funds for a portfolio that is stable and also grows with time. Consider moving from these three and include a large-cap fund such as Franklin India Bluechip or IDFC Imperial Equity Plan A.
This article was originally published on January 28, 2011.
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.
