I had invested in ICICI Prudential Fusion S-III Retail and Equity & Derivatives Wealth Optimizer. Both have done badly. Should I stay invested? Was my fund selection faulty?
-Prerna
ICICI Prudential Fusion S-III Retail is a 3-year close-ended fund, in the mid-& small-cap category. The fund fell more (61.65 per cent) in 2008, against the category average (down 57.40 per cent). In 2009, it gave (82.47 per cent), more than the category average (77.97 per cent).
ICICI Prudential Equity & Derivatives Wealth Optimizer Fund is a hybrid equity-oriented fund. It successfully contained its fall in 2008, but its performance (49.63 per cent) lagged the category average (57.06 per cent) in 2009.
Currently, both are two-star rated and have not performed well within their categories. You may exit and choose better funds. Remember, if you sell ICICI Prudential Fusion S-III Retail now, the exit load is nil but you will have to bear the proportionate unamortised initial issue expenses for exiting during the closed 3-year period. To avoid paying expenses, you can hold on till its redemption date, February 2011.
I want to invest in three equity funds via systematic investment plan (SIP) for 5-6 years. I have short-listed the following funds: Advise on my selection.
Funds Amounts (Rs) HDFC Top 200 4,000 Magnum Contra 3,000 Reliance Growth 2,000
-P Joshi
Your fund selection is impressive. All funds are 4/5-star rated, with a good history. Go ahead with your plans. However, track the regularly, as the schemes are likely to falter. If their performance shows signs of deterioration, look for other better rated funds.
| Funds | Return (%) | ||
| 1-year | 3-year | 5-year | |
| HDFC Top 200 | 35.32 | 16.35 | 27.69 |
| Magnum Contra | 29.10 | 9.29 | 25.64 |
| Reliance Growth | 43.68 | 13.41 | 27.36 |
| Returns as on July 7 | |||
I invest a total of Rs 9,000 in the following mutual funds via SIPs. I want to invest an extra Rs 5,000 (SIP), as I have surplus. Should I increase the present investments or opt for some new fund?
Funds Amounts (Rs) BSL Frontline Equity A 1,000 Reliance Div Power Sector Ret 1,000.00 Sundaram BNP Paribas Select Midcap 1,000.00 Canara Robeco Equity Tax Saver 2,000.00 Sundaram BNP Paribas Taxsaver 2000 Magnum Taxgain 2000
-Vaishaly
You should not increase the number of funds. Your portfolio has three good equity-linked savings schemes (ELSS). We assume you have invested in them because you want to save on taxes. Have you fully exhausted your 80C limit? If yes, then don't increase your investment in ELSS, as your money will get locked. Instead up the investment in BSL Frontline Equity A (Rs 3,000) and distribute the remaining in Sundaram BNP Paribas Select Midcap Reg and Reliance Diversified Power Sector.
| Funds | Return (%) | |
| 3-year | 5-year | |
| BSL Frontline Equity A | 12.21 | 25.95 |
| Reliance Div Power Sector Ret | 22 | 38.2 |
| Sundaram BNP Paribas Select Midcap | 12.62 | 27.73 |
| Canara Robeco Equity Tax Saver | 16.73 | 28.04 |
| Sundaram BNP Paribas Taxsaver | 12.13 | 23.66 |
| Magnum Taxgain | 6.18 | 21.51 |
| Returns as on July 7 | ||
If not, distribute Rs 5,000 among ELSS funds and BSL Frontline Equity Plan A.
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