I invested in HDFC Equity and and HDFC Mid Cap for the last four years. HDFC Mid Cap has given me a return of 22 per cent CAGR, whereas HDFC Equity has given me a return of 17 per cent CAGR only. My SIPs in these funds are due for renewal in October. Should I continue?
- Mohan
HDFC Equity has not been performing well for some time. But you are not liking the return of 17 per cent because the other one is giving you 22 per cent. Look at this from another context. You would get a return of around 8 per cent from a deposit of four years. But here you are getting double the return from a fund which is underperforming. I think this is mostly because of your disciplined investing through SIPs, although the fund is underperforming. So, you should definitely ccontinue to invest. But you are right in thinking not to invest all your money with HDFC only. Continue your SIP with HDFC Midcap. But you may consider to discontinue your SIP in HDFC Equity and choose a different multicap fund.
This article was originally published on July 25, 2018.
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