Dear Sir, I am investing in Sundaram mutual mid cap fund (growth) through SIP for the past five years. Please advise shall I continue or switch to other funds. Please give instruction.

Ans: Please continue with the portfolio and review it after 6 months. 

Ans: You may continue with 4 & 5-Star rated ones and rest can be relooked. Avoid Equity - Sectoral Funds 

Midcaps: Suitable options considering quality and value for money are:

• Motilal Oswal Midcap 30
• DSP Midcap
• Kotak Emerging Equity Fund

Ans: Dear Prashant,

Thank you for reaching out with your query. I understand you're currently investing Rs. 1500 per month in a SIP with Nippon Mutual Fund (previously Reliance), and you're seeking guidance on whether to continue with the same or consider another mutual fund.

As a financial advisor, my advice to you would be to first assess your financial goals, investment horizon, and risk appetite. These factors will help you make a more informed decision about your investments. Since you've mentioned that the current investment is in a growth mutual fund, it's likely that this fund is focused on capital appreciation by investing primarily in equity stocks.

To determine whether you should continue with your current SIP, consider the following:

Fund performance: Analyze the past performance of the Nippon Mutual Fund you're invested in by comparing it to benchmark indices and peer funds in the same category. A consistent track record of outperforming its benchmark and peers could indicate that the fund is being managed well.
Fund manager's experience and strategy: Look into the fund manager's experience and investment strategy. A fund manager with a successful track record and a strategy that aligns with your investment goals can be a positive sign.
Diversification: It's always a good idea to diversify your investments across various sectors and fund houses. If the Nippon Mutual Fund is your only investment, you may want to consider adding another mutual fund from a different fund house to your portfolio. This will help in spreading the risk and potentially enhancing returns.
Costs: Evaluate the expense ratio of your current fund and compare it to other funds in the same category. A lower expense ratio can result in higher returns over time.
If, after considering these factors, you find that your current mutual fund aligns well with your financial goals, investment horizon, and risk appetite, you may continue with the SIP. However, if you feel that there's room for improvement, you may consider exploring other mutual funds that better suit your requirements.

Please remember that past performance is not a guarantee for future returns, and it's always important to review your investments periodically to ensure they remain aligned with your financial objectives.

I hope this helps, Prashant.

Best regards,

Ans: Hello Vaibhav,

Firstly, it's essential to assess your investment goals, risk tolerance, and the suitability of the investment in your portfolio. The Motilal Oswal Nasdaq 100 Fund offers exposure to some of the largest and most innovative companies listed on the Nasdaq Stock Market, providing an opportunity for diversification and potential growth.

Considering you've been investing in the fund for the past six months, it's a good start to evaluate its performance against your expectations and the broader market trends. While short-term fluctuations are common in the stock market, analyzing the fund's performance relative to its benchmark index and peers can offer valuable insights.

Additionally, review the fund's investment strategy, portfolio composition, and expense ratio to ensure they align with your investment objectives and risk profile. Regular monitoring of your investments is crucial to adapt to changing market conditions and make necessary adjustments to your portfolio.

Ultimately, the decision to continue with your SIP in the Motilal Oswal Nasdaq 100 Fund should be based on your long-term financial goals, investment horizon, and comfort level with market volatility. If the fund continues to meet your expectations and remains in line with your investment strategy, it may be prudent to stay invested.

However, if you have concerns about the fund's performance, changes in your financial situation, or shifts in your investment objectives, it's advisable to reassess your investment strategy and consult with a qualified financial advisor to explore alternative options.

Remember, investing is a journey that requires careful planning, patience, and periodic review. I encourage you to stay informed, stay focused on your goals, and make decisions that align with your financial aspirations.