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An equity portfolio

Lock in gains from equity into safer investments as you reach close to your goal...

I have SIPs in IDFC Premier Equity, Birla Sun Life India GenNext and Franklin India Bluechip. My investment horizon is 5 years. I want to invest in one more fund. Which one should I pick? Are my current funds worth holding?
-Rakesh

While Franklin India Bluechip is an exceptional large-cap fund, IDFC Premier Equity is a well-performing mid- and small-cap scheme. Birla Sun Life India GenNext has a narrow investment universe. This fund aims to invest in companies that will benefit from India’s consumption story. The fund’s mandate keeps it away from commodity, cyclicals, industrial and construction companies which has substantially helped its performance. The funds portfolio constraints and its focus on FMCG and service companies has lead to its good performance.

You can spread the additional money that you want to invest across Franklin India Bluechip and IDFC Premier Equity. You don’t need to add another fund to your portfolio.

One thing to be watchful about is the protection of gains. Consider locking in your equity gains into debt as you reach close to your goal. This would protect your funds from short-term volatility in equity markets.



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