I have a SIP in the Nippon India Mutual Fund (Previously Reliance India Mutual Fund), (NIPPON INDIA MULTI CAP FUND - DIVIDEND PLAN - REINVESTMENT)and have been investing in the same for the las 5 yrs., monthly Rs. 3,000/-.

Presently the same in my opinion, is really not that worthwhile.

Request your help in updating as to whether i can stop the same and start a new SIP in which better MF.

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

Ans:

You may continue with the 5- & 4-star rated funds and for others you can consider these:

Aggressive Hybrid: Suitable options considering quality and value for money at present levels are Axis Equity Hybrid Fund and Tata Hybrid Equity Fund

Midcap: Suitable options considering quality and value for money at present levels are Motilal Oswal Midcap 30, DSP Midcap and Axis Midcap

Small cap: Suitable options considering quality and value for money at present levels are Kotak Small Cap and Axis Small Cap

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: Hi Santosh, thanks for writing to me. You can continue investing in UTI Flexi Cap Fund and ICICI Blue Chip Fund as they are good funds. You can consider stopping investments in ICICI Prudential Nifty Next 50 Fund and begin investing the SIP amount in Nippon India Multi Asset Fund.