I am 24 and plan to start investing in mutual fund SIPs. I have shortlisted HDFC Top 200 and DSPBR Top 100 Equity Fund. I plan to start investing with Rs 2,500 in each fund. Please suggest whether it is a good strategy.
– Pankaj Agarwal
The benefits of starting early with mutual fund investments is to get the benefit of equity exposure and long-term investing. SIP is the way to get the best of regular and disciplined investing and will take you a long way. Both the funds that you have short-listed are good. These two funds have a significant performance history and track record that makes them automatic selection into any portfolio. Collectively they form the core holdings of any portfolio being large- and large- and mid-cap oriented funds. These are funds that have stable returns and act as good investments over the long term.
What you need to do here on is to track the performance of these funds at least once a year and evaluate their progress. This way you will be able to check the progress your investments make and also consider any change in holding to these funds if their performance starts to dip.
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This article was originally published on April 18, 2011.
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