Considering that large-cap funds are finding it difficult to generate good returns, can you suggest some good mid-cap and small-cap funds? My horizon is four to five years.
- Vishwas Moghe
Investing in mid- and small-cap can be risky. In addition, the tenure of your investment is not sufficient to bear the volatility of these funds. If you are planning to invest in just one fund, we suggest you consider one in the large- and mid-cap space. During this time period, you will benefit if any of the two rallies. If you are going for more than one, ensure at least one fund is in the large- and mid-cap space. Here are funds and allocation we recommend.
| Large & Mid Cap: 60-80% exposure to large caps | |
| Funds | 1-year return (%) |
| BSL Frontline Equity | 26.60 |
| Canara Robeco Equity Diversified | 32.18 |
| HDFC Top 200 | 31.16 |
| Mid & Small Cap: <40% exposure to large caps | |
| Funds | 1-year return (%) |
| BSL Mid Cap Plan A | 35.18 |
| IDFC Premier Equity Plan A | 53.63 |
| Reliance Growth | 33.43 |
I have already invested in HDFC Top 200 and ICICI Prudential Dynamic. Now I want to invest in Quantum Long Term Equity Fund for five-ten years via SIP. Is it a good fund for the long term?
- Kriti Kumar
Yes, Quantum Long Term Equity is a good performer within its category. You may go ahead with your plan.
| Scheme | Category | 3-yr return (%) | 5-yr return (% ) |
| Quantum Long term Equity | Multi Cap | 18.8 | - |
| HDFC Top 200 | Large & Mid Cap | 18.19 | 26.68 |
| ICICI Prudential Dynamic | Multi Cap | 12.38 | 23.13 |
| Rating as on September 07, 2010 | |||
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Over the past year, I have been investing Rs 3,000 in a monthly SIP. My time frame is 10-15 years. Should I revisit my portfolio? I also made a lump sum investments in 2007 of Rs 15,000 and Rs 20,000 in Reliance Tax Saver and LIC Market Plus. Should I sell these?
- Manish Deolalkar
Why do you want to sell the units? Do you need the money? If not, have you decided where you are going to invest the amount?
The other scheme you mention is not from LIC Mutual Fund but from Life Insurance Corporation of India.
As for your other funds, we suggest you lower the mid-cap exposure. Here’s our suggestion vis a vis yours:
| Your Suggestion | ||
| Current funds | SIP amount (Rs ) | Equity category |
| HDFC Top 200 | 500 | Large & Mid Cap |
| Sundaram BNP Paribas Select Mid Cap | 500 | Mid & Small Cap |
| BSL Frontline Equity | 1,000 | Large & Mid Cap |
| Reliance Regular Savings Equity | 1,000 | Multi Cap |
| Our Suggestion | ||
| Current funds | SIP amount (Rs ) | Equity category |
| DSPBR Top 100 Equity | 1,000 | Large-cap |
| BSL Frontline Equity | 1,000 | Large- & mid-cap |
| Sundaram BNP Paribas Select Mid Cap | 500 | Mid- & small-ap |
| Reliance Regular Savings Equity | 500 | Multi-cap |
| Rating as on September 07, 2010 | ||
I have sold some of my long term equity holdings and would like to invest the proceeds to get a regular monthly income for next two-three years. I am willing to take a little bit of risk. Please suggest some good monthly income plans.
- Kiran
MIPs are a good option for you. Considering the time frame of your investment,they should beat other debt instruments. The one-year return of this category was 7.26 per cent, as on September 7. HDFC MIP Long Term, HSBC MIP Savings, Reliance MIP and Canara Robeco MIP are four options for you.
Value Research