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Should I switch over from Hdfc Growth fund to Hdfc mid cap opportunities fund for more appreciation

Have 3 SIP in HDFC Growth, HDFC Equity and Birla Sun Life Front Line Equity for last 8 years, 6 years and 5 years respectively. Wish to continue for 10 years more. I want to know if I should switch over from HDFC Growth Fund to HDFC Mid Cap Opportunities fund or to other scheme for more appreciation? I can take risk?

Jul 13, 2016 by A.K.Jha, Dhanbad  |   Mutual Fund

It is heartening to note that you have invested in Mutual Funds through SIP route and want to continue them for the long term.

HDFC Growth fund is a multicap fund whereas HDFC Midcap Opportunities is a Midcap Fund. Historically, it has been found that if your investing for a long term then midcap funds can give you better return than multicap funds. Having said that, midcap funds are riskier as well compared to multicap funds.

Since you are willing to take risk, switching your SIP investments to HDFC Midcap Opportunities Fund makes sense. Performance wise also, HDFC Growth Fund has not been doing well which reflects in its 2 star rating by Valueresearchonline and CRISIL Rank – 5, and also that it could not match the long term Category returns – 3 and 5 years. Whereas, HDFC Midcap Opportunities Fund is a 4 Star rated fund and has consistently beaten the benchmark and category returns with good margin consistently.

You might also like to check the long term performances of diversified equity funds and Mid and small cap funds.

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