I want to invest in a multi-cap fund, as I have already invested in HDFC Top 200 and HDFC Prudence. I want to know the advantage of multi-caps and if it is a good time to invest in them.
- Manish Patel
Multi-cap funds should weather all market conditions and come out a winner. They invest anywhere across value or growth, spectrum of capitalisation, where they see good returns within permitted risk levels. We classify this fund as those that invest 40-60 per cent in large-cap in last three years.
These funds are risky and depend a lot on the fund manager's ability. Make sure you understand the risks associated with them. You can try ICICI Prudential Dynamic Inst, Quantum Long Term Equity or Reliance Equity Opportunities. All these are well-performing multi-cap funds, with a performance record.
| Funds | 3-year return (%) |
| Franklin India Bluechip | 10.13 |
| ICICI Prudential Growth Inst | 8.90 |
| IDFC Imperial Equity Plan A | 8.60 |
I have been investing Rs 2,000 a month in Reliance Growth since October 2009, via systematic investment plan (SIP). The fund hasn’t outperformed the benchmark and category average. Should I shift to another fund or stick on?
- Manoj Agrawal
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This is a mid- and small-cap fund with very average returns in the past 18 months compared to some of its best performing peers. This fund rewards investors who remain with it for the long-term. Its track record over five years is top rated. However, it has had an erratic performance in recent times. If you are not in a hurry, consider staying invested.
I want to invest regularly in mutual funds via SIP. Should I invest in a daily SIP over the monthly one? My horizon is three years. Please suggest.
- Srinivasa Rao
Daily SIP has started gaining popularity among small investors. Based on the daily net asset value (NAV), fund units are purchased depending on the money you invest.
If you are new to investing, for a three-year frame, you can consider a large-cap fund. These funds have the bulk of their portfolio in large-cap stocks. You can invest either in one of them or pick up two (Rs 1,000 in each).
I recently booked profits on my fund investments. Is it the right time to invest in mutual funds again?
- Usha
It is excellent if you have made and booked profits. If you are thinking of investing again, you need to have a financial goal. If your decision is to book profits only to re-invest, you may be investing in the same funds you booked profits in. The lesson is to invest with a goal and book profits only when there is a new compelling idea in which you wish to invest the gains in, again.
Having a plan or a goal will also answer your other question on investing. There is no right or wrong time to invest in the markets. All you need is a clear idea on what the investment is for and the time you need to invest to achieve the goal.
I have to invest Rs 20,000 more to get the Section 80C benefit. Which equity-linked savings scheme should I invest in? Should I make a lump sum investment?
- Pankaj
You have two more months to invest the Rs 20,000 you have to avail the tax deductions. It will be a good idea if you can stagger your investments over two-three instalments in Canara Robeco Equity Tax Saver, Fidelity Tax Advantage or HDFC Taxsaver, as all these are five-star rated and have an impeccable track record and history.
Value Research