I want to invest Rs 5,000 every month in ICICI Prudential Focused Bluechip Equity, HDFC Equity, IDFC Premier Equity, Aditya Birla Sun Life Frontline Equity and DSPBR Top 100 for the next ten years and can take risks with my investment. Is this a good selection?
Diswaroop Chowdhury, Bangalore
Your portfolio of five funds has several overlaps in the underlying allocation to stocks and sectors. In fact, you have diversified in number and not looked at this aspect of overlap at all. While it is a good move to invest in a well-diversified portfolio of funds through SIPs, you should be aware that investments in mutual funds cannot be a one-time exercise. Once you start investing you should regularly track the performance of the funds that you invest in because a fund that performs well today may not do so forever. It is equally important to review the progress made by the funds you invest in for long-term wealth creation for which you have made these investments.
