I have been investing through SIP since 2011 in 5 funds- HDFC Growth, HDFC Children’s Gift Investment, Reliance Growth, UTI Dividend Yield and Franklin India Bluechip fund. Are these funds good for long term investment?
Of the 5 funds you hold, three of them are well performing funds with four and five star-rating. These include UTI Dividend Yield, Franklin India Bluechip and HDFC Children’s Gift Investment fund. The other two funds -- Reliance Growth and HDFC Growth -- are two and three star-rated.
Over the past five-years Reliance Growth fund delivered annualised returns at 3.78 per cent, while the category yielded 6.16 per cent. This fund has been a disappointing investment and you can do without it.
Last year, HDFC Growth fund was ranked 51 among the 73 large and mid cap equity funds. This year also the fund lost 17 per cent compared to a 13 per cent fall in the category. Although, there is no reason to panic as the fund has invested 64 per cent of its assets in large-cap stocks. Its performance over the past five years has been as good as an average fund in the category despite the recent hiccups. However, you can exit the fund if its performance deteriorates further.
Currently, 91 per cent of your portfolio is invested in equity, four per cent in debt and rest in cash and related instruments. Large caps stocks account for 63 per cent of your equity exposure while mid cap takes 24 per cent and small cap stocks have 12 per cent share. The equity portfolio is diversified and spread over 156 stocks. The top three sectors account for 48 per cent and top five stocks account for 20 per cent of the portfolio.