How do I transfer money from SBI Blue Chip Fund via STP?
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By ET Online |
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I have been investing in SBI Blue Chip Fund and SBI Midcap Mutual Fund since 5, December 2017. Now I would like to transfer some money from SBI Blue Chip Fund to SBI Mid Cap Fund through an STP. Is there any charges for this?
--Chakma Darsu
It seems, you are new to mutual funds. You are investing in equity mutual funds. Equity mutual funds are meant for long-term investments. You should invest in them with a long investment horizon of five to seven years. You have not mentioned why you want to shift money from SBI Blue Chip Fund to SBI Mid Cap Fund. Our guess is that you want to shift the money to a midcap scheme because it has performed well in the last year. You are committing a big mistake here. One, you are making wrong comparison: comparing a largecap scheme to a midcap scheme is wrong because they have different risk-reward profile. Largecap schemes invest in big companies. They are meant for conservative investors and they offer moderate returns. Midcap schemes invest in medium-sized companies and they can be volatile and risky. They also have the potential to offer higher returns. Chasing returns alone without caring about risks involved would land you in trouble. If you do not understand basics of mutual funds, you should seek the help of a mutual fund advisor.
--Chakma Darsu
It seems, you are new to mutual funds. You are investing in equity mutual funds. Equity mutual funds are meant for long-term investments. You should invest in them with a long investment horizon of five to seven years. You have not mentioned why you want to shift money from SBI Blue Chip Fund to SBI Mid Cap Fund. Our guess is that you want to shift the money to a midcap scheme because it has performed well in the last year. You are committing a big mistake here. One, you are making wrong comparison: comparing a largecap scheme to a midcap scheme is wrong because they have different risk-reward profile. Largecap schemes invest in big companies. They are meant for conservative investors and they offer moderate returns. Midcap schemes invest in medium-sized companies and they can be volatile and risky. They also have the potential to offer higher returns. Chasing returns alone without caring about risks involved would land you in trouble. If you do not understand basics of mutual funds, you should seek the help of a mutual fund advisor.
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