SIP to continue or NOT
Mr.vikas wrote :
Got your contact on Good fund Advisor and need your views on my investment thru SIP as below
1. SBI Contra --10000
2. Reliance Growth --10000
3. UTI --10000
4. Reliance Diversified --3000
I have been in this investment since September 08.Would it be advisable to continue with the SIP or withdraw to avoid further losses.The funds overall have lost almost 35-40%.
I am told by various colleagues that we must stop (without encashing) and invest money in a Fixed Deposit.
I do not have a problem of waiting for 2-3 years but need to get a professional guidance on which is a better option to move ahead
SRIKANTH SHANKAR MATRUBAI advised :
True, you have lost money, but you are not alone, whoever has invested has lost in the Bear market. Your funds seem to be good and there is no reason why you should not continue with the same. You have not given as which fund in UTI, your sip is going. It would have made my job easier.
With your horizon of 2-3 years, these funds should give you returns MORE than Fixed Deposits. Whoever advised you to stop this Sips and invest in FDs need a lesson on how Inflation and Taxes eat away your FD returns. You are better off investing in Mutual Funds through SIPs.
You do have good set of funds (I am counting only 3, as I do not know which UTI fund you have invested in), however, you do need to have a Good Solid Large Cap Fund to compliment your existing portfolio. For this, you can look at
Birla Sunlife Frontline Equity fund
DSP Blackrock Top 100 Fund
HDFC Top 200 fund
Sundaram Select Focus Fund
Either you add another 10000 monthly to any of the above funds, or reduce your existing sip from 10000 to 5000 in both SBI Contra and Reliance Growth and invest the saved 10000 in the above fund.
Best of luck,
Srikanth Shankar Matrubai
Also visit http://equityadvise.blogspot.com for an indepth Equity Analysis
Srikanth Matrubai is known as the WEALTH ARCHITECT. He is practitioner of Wealthy Habits and author of Amazon Best Selling Book DON'T RETIRE RICH. We strongly urge to follow your Advisor. This blog is purely for information. However, we strongly suggest you to consult a Financial adviser. This blog is purely for information purposes only and we do not take any responsibility whatsoever as the blog content may be changed from time to time and is generic in nature.
Tuesday, March 17, 2009
SIP to continue or NOT
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