Can you please suggest if my fund selection is good for long term SIPs

I have a monthly SIP of Rs. 8000 and the breakup is like this. Rs. 1,000 per month in HDFC Tax Saver, Rs. 1,500 in Kotak Tax Saver, Rs. 2,000 Motilal Oswal Most Dyanamic Equity Fund, Rs. 2,500 in L&T Business Cycle Fund and Rs. 1,500 in Franklin Templeton Smaller Companies Fund. Now I am planning to increase SIP to 15,000 per month by taking following mention SIPs. 1) DSP Micro Cap - Rs. 3000 pm, 2) UTI Logistic and Transportation - 2000 pm, 3) Sundram Select Midcap Growth - 2000 pm, 4) Mirae Asset Emerging Companies. Please suggest whether this selection ifs fine or you can suggest me. Thanks in advance for such a greater work Advisorkhoj is doing by awakening the investor and providing free of cost suggestion?

Dec 8, 2016 by Sumit Bisla, Faridabad | Mutual Fund

At the outset, we thank you for the kind words.

Please note that among your existing SIPs, excepting L&T Business Cycles Fund, rest are all good funds. L&T Business Cycles is a thematic fund and may not be good for long term investing through SIPs. It is always better to go with diversified equity funds if your risk taking appetite is moderately high to high.

With regards to fund selection for starting new SIPs, UTI Transportation & Logistics Fund is a sectoral fund and may be suitable for high risk takers. Again, this may not be a suitable choice for long term SIPs. You may consider doing SIPs in either UTI Equity Fund or UTI Midcap Fund from the stable of UTI Mutual Fund.

Hope the above helps! Thanks for writing to Advisorkhoj.

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