I have SIPs of Rs 7,000 each in HDFC Equity, Reliance Growth and Tata Infrastructure. I also have an SIP of Rs 9,000 in Sundaram Select Midcap. All were started in February 2010 for three years. Are these funds good? Do I have to make any changes?
—Thomas Ninan
HDFC Equity is a multi-cap, 5-star rated fund. Sundaram Select Midcap is a mid- and small-cap fund with a 4-star rating. You can continue with both.
Reliance Growth had a fairly good run till 2008. It was an average performer in 2009 but since then has underperformed the category average. There is no need to sell your holdings right now, you can wait till you complete a one-year period so that you pay no long-term capital gain tax. However, there is no need to continue with an investment in this fund as there are much better options in the ‘Equity: Mid & Small Cap’ category. Tata Infrastructures is not the best in its category but neither is it the worst. Canara Robeco Infrastructure and AIG Infrastructure and Economic Reforms are much better options.
This article was originally published on April 17, 2012.
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