Should I sell ICICI Prudential Value Discovery Fund?

I am investing in the following mutual funds:

Aditya Birla Sun Life Equity Fund (G): Rs 3,000
Aditya Birla Sun Life Frontline Equity Fund: Rs 3,000
ICICI Prudential Focused Bluechip Equity Fund: Rs 3,000
ICICI Prudential Value Discovery Fund (G): Rs 3,000
Mirae Asset Emerging Bluechip Fund: Rs 5,000

I am investing in these mutual fund schemes to meet my kid’s study expenses and for my retirement. I am 32 years old. Should I continue with these schemes? Or, should I make any changes. I am hearing some news that ICICI Pru Value Discovery Fund is not performing well. Should I continue investing in this? Or, should I switch?

-- Raghavender Nagisetti

Veena Malgonkar, certified financial planner, KM Wealth Solutions, responds:

ICICI Prudential Value Discovery Fund is underperforming its benchmark and some other schemes. However, you only have true diversification if some fund underperforms the others. So, it is a normal situation. Do not worry too much if a mutual fund scheme underperforms over a period of three to six months.

However, you do need to have some debt allocation, around 20 per cent at least. You can invest Rs 3,000 via an SIP in Franklin India Low Duration Fund. When the inevitable correction does come, you will have your own portfolio from which you can rebalance and buy at a lower level. So, you can switch to this debt fund.


" The most important key to successful investing can be summed up in just two words - asset allocation." Michael LeBoeuf