It is now two years since I started my monthly SIP (Systematic Investment Plan) 5,500 in the following funds: Mirae Asset Emerging Bluechip, SBI Focused Equity, SBI Small Cap and ICICI Nifty Next 50 Index. i am adding 2,000 lump sum in SBI Focused Equity with every market fall. I have been a risk taker investor for 20 years. I will add the same amount for the next 10 years and then stop the SIP and keep them for the next 10 years. Should I stop investing in Nifty Next 50 Fund and move it to SBI Focused Equity or SBI Small Cap or Mirae Asset Emerging Bluechip?
Mirae Emerging Bluechip, SBI Focused Equity and SBI Small Cap have performed well for investors across various market cycles. Adding more as a lump sum amount when the market goes down will also work well for you as it will help you invest at a lower NAV. From the existing fund, you can consider adding a lump sum amount to SBI Focused Equity Fund when the opportunity arises.
Mirae Emerging Bluechip currently does not allow lump sum amount and at this stage, it is better to invest in small cap funds through SIP instead of lump sum.
While you have mentioned that you can take higher risk, the existing funds have higher allocation in mid and small-cap companies. Currently, these companies may account for about 50% of your total portfolio. You may reconsider your investment in ICICI Nifty Next 50 and invest in Large Cap Fund or Nifty Index Fund for future. This will also help in increasing the allocation to large cap companies over a period. Ideally, six to eight equity funds are good in the long run.
When you plan to increase the SIP amount you can consider adding Canara Robeco Bluechip or UTI Nifty Index, Parag Parikh Flexicap and Kotak Equity opportunities in future.
This will not only help you create a better mix in market capitalization but will also help you to diversify into different asset management companies.
Harshad Chetanwala is the co-founder of MyWealthGrowth.com.