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Get The Right Support

Selecting good supporting funds is important for the overall performance of your portfolio

I have SIP investments of Rs 7,000 in HDFC Top 200, Rs 3,000 in Reliance Growth, Rs 1,000 in BSL Frontline Equity and Rs 1,000 in Sundaram SMILE fund. Should I continue with these investments?

You have some good funds in your portfolio and you have also got allocation with 66 per cent of your portfolio into large- and mid-cap funds. Both HDFC Top 200 and BSL Frontline Equity are good performing funds in the category with a proven track record and performance history. However, you have faulted in selecting good supporting funds in the mid- and small-cap category. There are better performing funds than what you have selected. You should consider investing in DSPBR Micro Cap or HDFC Mid-Cap Opportunities fund instead. These are amongst the best performing funds in the category. There is a lesson for you from this selection; it is important to select a good performing fund to start with, and one should also track the performance of their fund investments periodically to check its progress and make any changes if necessary in case funds consistently start underperforming.

Fund Scheme  Category  Rating  3-year return (%)  5-year return (%)
HDFC Top 200 Large & Mid Cap ***** 17.92 17.1
Reliance Growth Mid & Small Cap **** 12.36 14.58
BSL Frontline Equity Large & Mid Cap ***** 14.13 16.74
Sundaram SMILE Mid & Small Cap **** 11.45 12.1
Data as on April 08, 2011

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