I am investing through monthly SIPs of Rs 2,000 each in HDFC Equity and HDFC Top 200 since 2010. I can invest Rs 2,000 more, which third fund should I invest in?
Deepak Nair, Kochi
You have built a very strong portfolio of equity funds in funds with a long term track record and performance history. The degree of diversification offered to your investment in these funds make them suitable for long-term investments. Both the funds have seen several downs and ups in the markets to fit into any investor’s portfolio. Instead of adding a third fund, you could increase your investment in either or both these funds as per your convenience. However, you should ideally have a goal defined for which you should be investing, especially since you have been investing for seven years now, there should be a purpose attached to your investments. Also, make it a point to review your fund’s performance once a year against its benchmark and peers, to evaluate how it is faring.