I have been investing for the past year in the following funds via SIPs: Rs 2,000 in SBI Magnum Multi Cap, Rs 1,000 each in SBI Equity Hybrid Fund and Canara Robeco Emerging Equities, and Rs 7,500 in Invesco India Tax Plan. The investment horizons are 10-15 years. Should I make any changes?
Ankur Choudhary, Co-Founder and CIO, Goalwise replies, “One year is not a long time period to properly evaluate equity funds, but if you find that some of these funds have been under-performing their peers across multiple time periods—one-, three- and five years— then you could consider changing them. For instance, SBI Equity Hybrid has lower one-, three and five-year returns than ICICI Equity and Debt Fund and so the latter can be a better choice. Similarly, Kotak Standard Multicap Fund has delivered higher returns across multiple time frames compared to SBI Magnum Multicap. You can continue with Canara Robeco Emerging Equities as it is one of the top funds in its category. Invesco India Tax Plan is an ELSS fund in which each SIP instalment will be locked-in for three years. This fund has also underperformed over the past year and can be replaced by either Axis Long Term Equity or Kotak Tax Saver, both of which have higher one-, three- and five-year returns than Invesco. Remember, even though you are investing for 10-15 years, you need to periodically re-evaluate your investments to ensure that you are not stuck with underperforming schemes.”