I have SIPs in three funds and all of them are from the same AMC. Should I diversify by investing across different fund houses? I want to start two more SIPs for the next 5-7 years and have shortlisted BSL Frontline and Franklin India Bluechip. I am 50 years old and have another eight years to invest.
– US Kale
Your fund selection is good, all are 5-star rated funds with proven track record and performance history to find a place in any portfolio. There is no harm in selecting funds from the same AMC as long as they are good and justify their place in your portfolio. It will be a good idea if you have a plan when getting into investing in mutual funds. Having a large- and mid-cap fund, mid- and small-cap fund and an equity-oriented hybrid fund does not give your portfolio the character for long-term investments.
As you plan to invest an additional Rs 10,000 a month; it would be good to have the large-cap fund, Franklin Bluechip that you have short listed to form the core of your portfolio. This will bring in stability to your portfolio. And though, BSL Frontline Equity is a good selection, there is little to choose between it and HDFC Top 200; both are best performing funds in the category. Track the performance of the funds you have selected and review fund selection if it is not faring well.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This article was originally published on April 12, 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.
