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With Mirae Asset Emerging Bluechip now having a cap on the SIP amount, should I exit it?

Ashutosh Gupta suggests how to invest in a fund that has restricted fresh inflows

I am doubling my SIPs due to a pay hike. I invest in four equity funds right now, but one of them Mirae Asset Emerging Bluechip now has a cap on the SIP amount. So, should I add another large & mid-cap fund in addition to this one or completely exit it and start with a new fund?
- Akshay

Well yes, Mirae Asset Emerging Bluechip has recently restricted fresh investments to only SIP investments of up to Rs 2,500 per month. But remember, any existing SIPs which are still running can continue even if they are of a value greater than Rs 2,500. Now, given the strong long-term performance record of this fund, it is one of the very compelling options for anyone's growth portfolio.

If your incremental investments would not relegate it to a very small and insignificant holding in your portfolio, which I presume might not be the case, then I suggest you continue with your SIP in this fund and distribute your incremental amount in the other three funds. This is because if you exit this fund now, you will not be able to re-enter because of investment restrictions. Sometime in future, as and when the fund re-opens for investments, you may do a little bit of reshuffling and rebalancing of your money to increase allocation to this fund. So, that is one approach that you can consider.

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