Should I do STP from ELSS Fund to open ended fund

I had SIP in HDFC tax saver fund and stopped it 9 months back as my 80C section is now full. HDFC tax saver fund is not performing that good compared to its peers. So I planned to STP the redeemable units monthly to HDFC Mid cap opportunities fund-D-G. I would like to STP all my units periodically, so it comes to around 5 years. Is this the right pick considering the market is at peak or should I go for HDFC balanced fund? I do not have any mid cap funds in my portfolio?

Apr 11, 2017 by Vinayak, Bangalore | Mutual Fund

Yes, you can transfer units from your existing investment in HDFC Tax Saver Fund to HDFC Midcap opportunities fund through monthly STP route.

The choice of doing STP between two funds - HDFC balanced and HDFC midcap opportunities - depend on your risk taking ability. If you can take high risk and investment horizon is 5 years then investing in midcap fund is a better option. Else, you should invest in balanced fund.

Yes, you are right! The performance of HDFC tax saver in the last 3-4 years has not been remarkable and therefore, your decision to shift to some other good performing fund in HDFC MF is a right thought.

Thanks for writing to us.

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