I have started investing in mutual funds through SIPs last year. My investments are as follows:
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Now I want to renew only one of the above SIPs. Which one should it be? What do you think about my funds?
—Sunil Amrutlal Vakani
We think you can consider investing more in Reliance Vision Fund. Two of your funds - DSPML Equity and Reliance Vision -are suitable to form the core of your portfolio. But the latter accounts for a small part of your portfolio and you can easily allocate more to it. Among your other funds, Birla Dividend Yield Plus has been a laggard and is currently rated one-star. You can avoid investing more in it. Fidelity Equity Fund has been an average performer, but is relatively young. An opinion can be formed about it only once it has a longer performance history. Reliance Growth has been a return machine over the years, but being a mid-cap fund, it can be more volatile as well. It is an apt choice to add that extra punch. But investing more in it will skew your portfolio towards small companies and less liquid companies which may not be desirable, particularly during the uncertain times that the markets are facing these days.
Therefore, we would recommend you to renew your SIP in Reliance Vision Fund.
This article was originally published on October 05, 2006.
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