It has been two years now since I began a month-to-month SIP (systematic funding plan) of ₹5,500 within the following funds: Mirae Asset Rising Bluechip, SBI Focussed Fairness, SBI Small Cap, and ICICI Nifty Subsequent 50 Index. I’ve been including ₹2,000 lumpsum in SBI Focussed Fairness with each market fall. I’ve been a risk-taking investor for 20 years. I’ll add the identical quantity for the subsequent 10 years after which cease the SIPs and maintain them for one more 10 years. Ought to I cease investing within the Nifty Subsequent 50 Fund and shift it to SBI Centered Fairness or SBI Small Cap or Mirae Asset Rising Bluechip?
Mirae Rising Bluechip, SBI Centered Fairness and SBI Small Cap have completed nicely for buyers throughout totally different market cycles. Including extra within the type of lump sum when the markets fall will even work nicely for you as it’s going to assist you make investments at a decrease NAV. From the prevailing funds, you’ll be able to contemplate including lump sum to SBI Centered Fairness Fund as and once you get the chance.
Mirae Rising Bluechip doesn’t permit lump sum at current and, at this stage, it’s higher to put money into the small cap funds via SIP as an alternative of a lump sum.
When you have talked about you’ll be able to take excessive threat, the prevailing funds have a better allocation in mid and small-cap corporations. At current, your total portfolio might have round 50% in these corporations.You’ll be able to rethink your funding in ICICI Nifty Subsequent 50 and put money into both a big cap fund or a Nifty index fund for the longer term. This will even assist to extend the allocation in massive cap corporations over a interval. Ideally, six to eight fairness funds are good over the long run.
You’ll be able to contemplate including Canara Robeco Bluechip or UTI Nifty Index, Parag Parikh Flexicap and Kotak Fairness Alternatives in future once you plan to extend the SIP quantity.
This is not going to solely assist you create a greater combine throughout market capitalization but additionally diversify in several asset administration corporations.
Harshad Chetanwala is co-founder at MyWealthGrowth.com.
Supply: Live Mint