I have an SIP in Birla Sunlife Midcap Fund for the last 4 years. However the scheme has not performed upto the mark. Most of the time its rating is only 2 stars though the yearly returns work out to be 30 per cent. Hence I want your opinion on the following:
- Nandan Kossambe
Birla Sun Life Midcap Fund's record is rather lackluster and you can switch to a better performing fund. Birla Sun Life Pure Value certainly looks more desirable in terms of its return and other parameters. Here, it is best to make a full switch rather than STP. While the decision to switch is clear, it is not clear why you want to consider redeeming your fund.
You should exit from the fund only if you have met the financial goal for which you started investing, or need the money within the next 3 years. If you don't fit into these categories, you should continue investing in equity funds. You can easily transfer your funds from one scheme to another within the same fund house. In case you have decided to redeem, you can use a Systematic Withdrawal Plan (SWP).
Birla Sun Life Pure Value fund is a fund with more desirable returns and rating. If you want to switch your investment within an AMC then you should consider Birla Sun Life Pure Value. Franklin India Smaller Companies, Canara Robeco Emerging Equities and BNP Paribas Midcap are other good funds from this category which have outperformed peers. You can consider switching to them too.
This article was originally published on January 23, 2015.
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