I have SIP investments in HDFC Top 200, Franklin India Flexi Cap and Fidelity Equity for the past five years. I have additional sum to invest every month, what fund should I invest in?- Varadaraj
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Although you have selected highly rated funds which have a proven track record and performance history, they are all from the same large- and mid-cap category and do not offer diversification to your portfolio. Instead of duplicating the investment idea, you will be better considering diversifying your investment in large-cap funds such as DSPBR Top 100 Equity and mid- and small-cap fund such as IDFC Premier Equity to have a well diversified portfolio of equity mutual funds. Invest regularly and track the performance of your investments at least once a year to check its progress.
This article was originally published on July 20, 2011.