I have SIP of Rs. 1,000/- p.m. in Canara Robeco Blue Chip Equity Fund and Axis Midcap Fund and SIP of Rs.2000/- pm in SBI Small Cap Fund for last one year. Please advice whether I shud continue in these funds or do I need to change the funds?
Ans: Your current SIPs seem to be diversified across large-cap, mid-cap, and small-cap funds, which is a good strategy for long-term growth. However, whether to continue with these funds or make changes depends on various factors:
Performance: Check the performance of these funds against their benchmarks and peers. Consistently underperforming funds might be a concern.
Fund Manager: Ensure the fund manager has a good track record and is experienced in managing the type of fund you're investing in.
Expense Ratio: Lower expense ratios can significantly impact your returns over the long term. Ensure you're not paying too much in fees.
Fund Strategy: Understand the investment strategy of the funds. Make sure it aligns with your risk profile and investment goals.
Market Conditions: Market conditions can influence the performance of different types of funds differently. Diversification helps, but sometimes a market shift might warrant a change in strategy.
Given that you've been investing for just a year, it might be premature to judge the funds solely based on performance. However, regular review is essential. If you find that these funds are not performing as expected or if there are changes in your financial goals or risk appetite, consider consulting a financial advisor to help you make informed decisions. Remember, investing is a long-term game, and patience is often rewarded.