Hi, i am investing in following mutual funds for last few years. Pls suggest if I should continue with them or replace with other MF ? Aditya Birla SunLife MNC-G - 5000/- Canara Robecco Bluechip Equity Reg-G - 10,000/- Axis Small Cap Reg-G - 10,000/- HDFC Flexi Cap-G - 10,000/- ICICI Prudential Value Discovery (G) - 10,000/- Mirae Asset Emerging Bluechip Reg-G - 5,000.- Sundaram Midcap Reg-G (BLD) - 5,000/- Nippon India Growth (G) - 10,000/- Tata Digital India Reg-G - 5000/- PGM India Mid cap Opportunity Reg-G - 5000/- Mirae Asset BFS Fund Reg-G - 5000/-

Ans: I take it that you have these amounts as SIPs in various funds. My observations are:-

· You have about 18% of your amount in sectoral or thematic funds and these three funds are not performing. It is always better to be in diversified funds than go into narrow themes like this since they are typically cyclical and a common investor normally is not able to time entry and exit into such categories. My suggestion is to get out of them.
· Your highest allocation is to midcap funds. Except the Sundaram Midcap, other two are performing well. You may get out of Sundaram fund.
· All your other funds are performing decently.
· Your Large cap fund allocation is very low which makes your portfolio risky – you may like to have a relook at it, unless you are comfortable with high risks.
· Same way, it is also a good idea to have a good allocation to Flexicap funds. A portfolio should also be balanced for risk by having a Balanced Allocation or an Asset Allocator fund. Think about it.