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Can I continue with these mutual fund schemes?

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Can I continue with these mutual fund schemes?

I am investing via SIP in the following mutual funds:
ICICI Prudential Bluechip Fund: Rs 1,000
Canara Robeco Emerging Equity Fund: Rs 1,000
HDFC Hybrid Equity Fund: Rs 1,000
Kotak Standard Flexi Cap Fund: Rs 1,000

I am planning to invest for three to five years. Have I selected good schemes or should I make changes?

— Suhas A Magdum

Juzer Gabajiwala, Director mutual fund research, Ventura Securities, based in Mumbai, responds:


The number of schemes in your portfolio are high with only Rs 1,000 in each fund. With your current SIP amount of Rs 4,000, it would be wise to have only two schemes. Also, if the horizon for SIP is three years, your average investment period is only 18 months or 1.5 years as the money is invested evenly from 1st month till 36th month. Whenever one does an SIP in an equity oriented fund, it is preferred to have an average investment period of at least five years (SIP period should be 10 years) to get the benefit of compounding. So, try to get the maximum advantage of SIP.

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