I am investing Rs 7,000 per month in different mutual funds. The returns are in negative since the last four to five months. I want to exit from some funds. Please suggest. I have invested in the following schemes:
1. UTI MNC Fund Growth Option Rs 1,000
2. UTI Equity Fund Growth Option Rs 1,000
3. Aditya Birla SL Balanced Advantage Fund (G) Rs 1,000
4. HDFC Balanced Advantage Fund (G) Rs 1,000
5. L&T Emerging Businesses Fund Growth Rs 500
6. Mirae Asset India Equity Fund Growth Rs 1,000
7. Reliance Small Cal Fund Growth Rs 1,000
8. SBI Small Cap Fund Growth Rs 1,000
Should I continue or exit from some funds?
— CS’Preety Gupta Tarafdar
You have not mentioned important details like your goals, investment horizon, risk profile, etc. You also have not mentioned when you started investing in these schemes. Without these details, it is not possible to offer a specific response. However, here are some pointers that might help you.
You are currently investing in a thematic (MNC) scheme, two balanced advantage scheme, two multi cap schemes, and three small cap schemes. Small cap schemes are risky. That is why they are recommended to only investors with very high risk appetite. You should also have a long investment horizon of seven to 10 years. Balanced advantage schemes are meant for extremely conservative equity investors, while multi cap schemes are meant for investors with a moderate risk appetite.
You should evaluate your risk profile and choose schemes that are in line with it. If you cannot do it on your own, you must seek the help of a mutual fund advisor near you.