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Where to SIP?

I have started investing in five schemes through SIPs last year. Now I want to renew only one of the SIPs. Which one should it be? What do you think about my funds?
-Sunil Amrutlal Vakani

I have started investing in mutual funds through SIPs last year. My investments are as follows:


Scheme Amount
Birla Dividend Yield Plus Rs 12,000
DSPML Equity Rs 12,000
Fidelity Equity Rs 12,000
Reliance Vision Rs 6,000
Reliance Growth Rs 6,000

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.


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