Ask ET mutual Funds: Should I invest in ICICI Prudential Equity Arbitrage Fund?

I have two SIPs in Axis Long Term Equity Fund (G) and ICICI Prudential Focused Bluechip Equity Fund Regular (G). I have been investing in Axis Long Term Equity Fund since the past two years and want to continue this for over 10 years. I just started investing in ICICI Prudential Focused Bluechip Equity Fund Regular (G) and have a plan to continue for 10+ years. Amount invested is: Rs 8,500 in Axis Long Term Equity Fund and Rs 5,000 in ICICI Prudential Focused Bluechip Equity Fund Reg (G). Also, I am planning to invest Rs two lakh in ICICI Prudential Equity Arbitrage Fund (G). Should I invest in it?
-- Praveen Pandey

Ankita Narsey, a mutual fund advisor, responds:

I am glad to know that your time horizon for an SIP is beyond 10 years. However, it is very important to monitor the performance of your funds on a regular basis.


Your two SIP investments are in good performing funds. Axis Long Term Equity is an equity linked savings scheme which gives you exemption under Section 80C of the Income Tax Act. ICICI Prudential Focused Bluechip Fund has been a consistent performer beating its benchmark in 2016.

You can continue your SIPs in both these funds but do ensure periodic reviews of them.

Assuming you want to hold an equity oriented fund for a shorter duration, you can invest in ICICI Prudential Equity Arbitrage Fund. However, if you want to opt for a conservative equity fund for a longer time horizon, you can consider ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund or HDFC Balanced Fund. Also, kindly invest via Systematic Transfer Plan (STP) route to average your cost of investment.


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