Are these investments good for three years?

I have invested in SBI Bluechip Fund through an SIP of Rs 5,000 and SBI Magnum ELSS through an SIP of Rs 6,000. Are these investment okay for at least three years of investment?
--Akash Garg

You should invest in equity mutual fund schemes, including tax saving mutual fund schemes, with a minimum horizon of five years. Also, keep in mind that ELSS or tax saving schemes come with a mandatory lock-in period of three years. You cannot sell them before this period. The lock-in period is applicable every SIP instalment.

SBI Bluechip Fund is part of our recommended equity mutual fund portfolios. It is a good fund and you can continue to invest in it. SBI Magnum Taxgain has been underperforming its category in various periods. Stop the SIP in it and start an SIP in a tax saving scheme like Axis Long Term Equity Fund, Franklin India Taxshield, Birla Sun Life Tax Relief 96, DSP Black Rock Taxsaver.

Try to assign a goal to every investment. This will help you to stick to your investment plan and create wealth over a long period.


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