I have an SIP of Rs 3,000 per month in IDFC Premier Equity for the past three years and IDFC Sterling for the past one year. Even though IDFC Premier is recommended by all analysts, it is IDFC Sterling that has given me superior returns so far. Should I stop my SIP in IDFC Premier and put that amount in IDFC Sterling?
- Ajith Nambiar
Although both funds are from the same AMC, belong to the same fund category and are managed by the same fund manager; their objectives are different. The focus of the funds is different as can be seen from the comparison. Moreover, IDFC Sterling has a higher allocation to small-cap stocks compared to IDFC Premier Equity, which makes investments in this fund risky. If you understand the consequences of higher allocation to small-cap stocks, you can go ahead and invest in IDFC Sterling, however, if you are looking for some stability, IDC Premier may be a better option.
This article was originally published on September 24, 2012.
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.
