I am a 33-year-old IT professional. I have just started investing in mutual funds through two months ago. I am staying in a rented flat and want to buy a flat in a couple of years. I may have to stop/reduce the sip then. I am investing Rs 1,000 per week on the four funds below:
Axis Bluechip Fund
Axis Multi cap Fund
Parag Parikh Long Term Equity-multi cap
Motilal Oswal Nifty 50 Index Fund
Are these funds good or should I replace them with any other better funds?
If you recommend any other good fund, I can add one or two more funds in the portfolio?
Is weekly SIP good or should I move to monthly? I started weekly to capture the falls, because it happens sometimes that market falls for a week and gain back in next.
You are currently investing in equity mutual funds. These schemes are meant for long-term investments of at least five to seven years. If you have a short-term goal and if you are going to stop or reduce your investments, you are unlikely to make wealth over such a short period. We hope you need not sell these investments to take care your property purchase. Too years is too short a period to invest in equity mutual funds. It is also extremely risky to invest with such a short period.
We won’t be able to recommend any schemes to you because you have not shared to your risk profile with us. Your current portfolio has large cap and multi cap schemes – that is an ideal portfolio for a moderate risk-taker. If your risk profile is indeed moderate, you may invest mostly in multi cap funds. You can also take a small exposure to large cap funds if you want to reduce the overall risk in the portfolio.
Most investors go for monthly SIP because they get monthly salaries. It is just a matter of convenience. If you want to do weekly SIP, you can go ahead. As you said, it may also beneficial in the current market scenario where there is a lot of volatility. However, weekly SIP would result in many entries and you may find difficult to keep track of your transactions. It is not possible to say whether daily SIP would return more because we have not come across many studies that have looked at long-term data on this.