Can I discontinue my SIP in ICICI Prudential Value Discovery?

I am 24 years old. I have been investing Rs 1,000 from my pocket money in mutual funds via an SIP for last two years. I got a job now, and I have increased it to Rs 3,000. My SIP is in ICICI Prudential Value Discovery – growth but the returns are not significant. Is it advisable to discontinue my investment in the scheme and start investing in another scheme? Also, please suggest where else can I invest? I earn Rs 32,000 per month. I have recently started an LIC policy with an annual premium of Rs 28,000.

-- Sweta Rao

ICICI Prudential Value Discovery Fund has been underperforming its benchmark and category in the last one year. It is an iconic multicap scheme. So, some investors are giving it a little more time before taking a call on whether to discontinue their investments in the scheme. We have dropped the scheme from our equity mutual fund SIP portfolios last month. It is fine if you want to give it another six months. Otherwise, you can stop your SIP investment in it and start a new SIP in another multicap scheme.


Here are our recommended multicap schemes: Best Multicap Schemes to Invest in 2017

You may look at our recommended equity mutual fund SIP portfolios for your new investment. Best Mutual Funds to Invest in 2017

Insurance plans are meant to offer you a life insurance cover. You shouldn’t buy them for investment purpose. They can’t be compared to an investment product because there is cost of life insurance in them. So, these insurance plans don’t invest the entire money you pay. In comparison, in an investment product the entire money is invested. Insurance products with savings/investment element do not offer great returns or adequate life insurance cover. If you want to buy an adequate life insurance cover to safeguard your financial dependents, always opt for a pure term insurance cover.

A term insurance product offers only life insurance cover, it does not have any savings or investment element in it. That is why the premium is much lover. Finally, keep your investment and insurance needs separate. Invest in mutual funds for investment needs, and always buy a term plan for a life insurance cover.