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Stable Downside Protection

A large-cap fund will give good, stable returns with limited downside risk. Here are some options…

I have been investing in DSP BlackRock Top 100 Eqt for over 3 years. Should I continue with this fund? I also want to increase my investment amount. My time horizon is of 3 years, where should I invest?
-Joseph

DSP BlackRock Top 100 is a good large-cap fund. The past 3 years wouldn’t have been disappointing, but not inspiring either. However, a large-cap fund is an ideal vehicle for you, especially since you intend to invest for another 3 years.
These funds have the potential to deliver returns with reasonable stability. Their downside risk is also less than other funds that invest in mid- and small-caps as well. You should continue investing in this fund and invest the additional amount in a similar fund like Franklin India Bluechip or ICICI Prudential Focused Bluechip Equity.

This article was originally published on November 23, 2012.

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