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I am investing 80000 per month in SIPs and should I add more in these funds or suggest new funds

I have started SIP of 80000 Rs in following funds for 10 years. ICICI Prudential Value Discovery, Franklin India Prima and prima plus, Reliance Mid Cap Opp Fund, Reliance Equity Opportunities Fund Growth, HDFC Mid Cap Opportunities Fund, Reliance Top 200 Growth and HDFC Top 200 Growth. Should I look into other funds Or increase the amount of SIP into these funds?

Sep 29, 2015 by Sanket Patel, Ahmedabad  |   Systematic Investment Plan

You have provided very limited information. For example, you have not shared how much you invest in each of these fund. Also, we are not aware of a fund named Reliance Mid Cap Opportunities Fund. You may have provided the wrong scheme name in your query. You should note that out of the seven funds, 4 funds are small and midcap funds (ICICI Prudential Value Discovery, HDFC Midcap Opportunities, Reliance Equity Opportunities and Franklin India Prima), 2 funds are diversified equity (flexicap) funds (Franklin India Prima Plus and Reliance Top 200) and only 1 funds is a large cap fund (HDFC Top 200). While midcap funds can give higher returns than large cap funds in a bull market, you should note that midcap funds are more volatile than large cap funds. Diversified equity (flexicap) funds invest in both large cap and midcap stocks. The risk return profile of these funds lie midway between large cap and midcap funds. Though you have not shared how much you invest in each of these fund, if we assume that you have allocated equal amounts to each of these funds, your portfolio has an aggressive risk return profile. You should ensure that your risk profile of your mutual fund portfolio is aligned with your investment objectives and risk tolerance level. If you have an aggressive risk tolerance level, it is fine to have a higher allocation to midcap funds. If you are not comfortable with the risk profile of your portfolio, then you should review your portfolio and rebalance accordingly.

Since you have a 10 year investment horizon, you will be better off selecting consistent performers in your portfolio. Most of the funds that you have selected are top performing funds. However, you may want to compare the performance of HDFC Top 200 Fund with that of most consistent large cap funds in our article, Best mutual fund consistent performers in 2015: Large Cap Funds, and make adjustments to your portfolio, if required.

If you have incremental monthly investible surplus and a sufficiently long investment horizon (at least 5 years), it is always a good idea to invest in equity funds through systematic investment plans. Equity as an asset class provides superior returns compared to any other asset class, over a long investment horizon. Investment in equity funds through SIP over a sufficiently long time horizon can create substantial wealth for the investors (see our article, How Mutual Fund SIPs have created wealth over the last 15 years: Large Cap and Diversified Equity). If your current mutual fund portfolio is aligned with your risk profile, you can increase the SIP amounts in these funds. As discussed earlier, most of the funds in your portfolio are very good funds. However, if you want to alter the risk profile of your portfolio, you should increase your allocations to large cap and diversified equity (flexicap) funds. You can find the most consistent performers in these two categories in our articles:-

Best mutual fund consistent performers in 2015: Large Cap Funds

Best Diversified Equity Mutual Funds: Consistent Performers for investment in 2015

You should review your mutual fund portfolio with your financial advisor and make investment decisions that will help you meet your investment objectives.

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