Monday, January 12, 2009


Mr.Saurabh asked :

I am a new user to this site and I must
say you are doing a great job!!

My Portfolio includes a SIP of a total
of 6,500 amongst these funds

1. SBI Tax saver,93

2. Birla Tax Saver,96

3. Sundaram Tax Saver Fund
I hope to open another SIP in HSBC Fund
which can give me free Critical Illness cover. Could you please advice
if it is ok.

Also, please comment on the best fund
(irrespective of free moolah or tax saving scheme) in which a SIP can be
started for a long term perspective. I have adequate insurance as well.



Dear Saurabh,
Thank you for your kind words.
Are these the only funds in your portfolio or any there any more?. Why only ELSS funds?. You should be investing in Diversified Equity Funds which are not only more liquid, but also have given more returns.
All the three funds you have invested are very good and you can stay invested in the same. However, you can discontinue your sip in SBI Tax Gain 93 Fund, as its corpus has become bloated and also its recent performance has been below average. And moreover, the change of Fund Manager, would have some impact on the performance, which has to be seen.
Instead, you can consider investing in DWS Tax Saving Fund, which has a very good performance since its recent inception. The Free Life Insurance of 5 times your investment given by the Fund is an added Bonus. Even without this offer, you could consider investing in the Fund. It is that good.
As for your investment in HSBC Fund, it would have been better if you had given the name of the fund you have invested in. If it is HSBC Equity Fund, it is a very wise decision.
For non-ELSS funds, from a long term perspective, you can consider investing in the following funds through SIPs:
Birla sunlife Equity Fund
DSPML World Gold Fund
Fidelity Equity Fund
HDFC Prudence Fund
JM contra Fund
Mirae Asset India Opportunities Fund
Reliance Natural Resources Fund
Sundaram Select Focus fund
continue investing through sips. Do review your portfolio regularly.
Best of luck,
Srikanth Shankar Matrubai
Also visit for an indepth Equity Analysis

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