I am a senior citizen and have been investing in mutual funds through SIPs for the last one year. My portfolio comprises Tata Digital India Fund, Aditya Birla Sun Life Digital India Fund, ICICI Prudential Technology Fund, Franklin India Technology Fund and Axis Bluechip Fund. I want to know in which fund, should I continue investing for another one year.
- Madhu
Before answering your question, I would like to ask you one. Do you really need the money after one year? If you do, then I think it's about the time that you plan your exit from your investments.
If this money is likely to remain invested, I think you may continue with your investments in Axis Bluechip Fund. But first and foremost, investing in four tech-driven or digital-India-thematic funds was not a good idea, even though they have broader mandates. For someone like you, a senior citizen who would want some stable equity investing, the choice should either be an aggressive hybrid or a multi-cap fund. Nevertheless, technology/digital funds have done well in the last two years. Hence, the performance of the technology sector has reasonably been positive as compared to the broader market. So, you have been lucky so far but you may not be lucky all the time.
For every investor, the only insurance is diversification and entrusting our money to a thoughtful fund manager who will keep it away from or at least lower the exposure to very risky segments of the market. This is because it is difficult to guess what will do well in the recent future. Thus, I would say that four of these funds are not desirable to be in your portfolio.
To reiterate the important bit, first decide whether this is a long-term investment or you need all of the money after one year. And then plan your exit.
This article was originally published on December 04, 2019.
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