Do Away with Overlapping Funds | Value Research IDFC Sterling Equity & IDFC Premier Equity have a substantial overlap. Invest in any one of them…
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Do Away with Overlapping Funds

IDFC Sterling Equity & IDFC Premier Equity have a substantial overlap. Invest in any one of them…

I have been investing in Birla Sun Life Frontline Equity, Birla Sun Life Gold ETF, ICICI Prudential Dynamic, HDFC Top 200, HDFC Equity, IDFC Premier Equity and IDFC Sterling Equity for the past 6-7 years via the SIP route. I have stopped my SIPs in Reliance Regular Savings Equity, but haven’t redeemed my investments from it. Should I move my money out of this fund? Please also give your opinion about my other holdings.
-Deepak Sharma

Reliance Regular Savings Equity is the best-performing equity fund from the Reliance fund house. You can stay invested in it, and maybe even consider resuming the SIPs in this fund. As far as the other funds in your portfolio are concerned, you might do better with fewer holdings. You can do without HDFC Top 200 since you already have HDFC Equity.
The portfolios of these two funds have an overlap of nearly 65 per cent, which is undesirable. Similar is the case with IDFC Premier Equity and IDFC Sterling Equity; holding just the former of the two is enough. Once you make these changes, your portfolio will have the right amount of diversification across market caps and investment styles.



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