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Diversify for Better Returns

Get better diversification across fund houses & styles by investing in well-performing schemes of different AMCs…

I have SIPs of Rs 10,000 each in four mutual funds – UTI Opportunities, UTI Dividend Yield, HDFC Prudence and HDFC Equity. Now, I want to start SIPs of Rs 20,000 more with an investment horizon of over 15 years. Please advise me what to do
.-Rajiv Gupta

While you have chosen good funds, you require a bit of diversification. You have two UTI funds and two HDFC funds, and all four funds are good. But what you get through them is similar management and a complementary portfolio; hence, there is room for changes.
If you want to keep things simple, then just add to the current SIPs in these funds. But you will get better diversification if you replace HDFC Prudence with a well-performing equity fund of another AMC. You can also replace UTI Opportunities fund with a better fund to achieve style diversification. You don’t need more than 3-4 funds in your portfolio. And in such a falling market, you should keep your SIPs going on for better long-term returns.

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