Concerned about your mutual fund investments? Here's help

Amidst the global stock market rout, retail mutual fund investors are getting perturbed. ET spoke to Kalpesh Ashar, Certified Financial Planner, Full Circle Financial Planners and Advisers for answers to some of these common investor queries.

Q: I am an investor in the L & T Equity fund direct plan through the SIP route. Infact I have further added to my investment in this scheme. I have checked the long term i.e 3 years & 5 years performance of this fund on your website as well as Value research ,it isn't doing too well. But on a 10 year basis it's an out performer. I am a long term investor.Should I stay invested or redeem. Which similar kind of funds do you recommend? --- Micheal Lobo

A:Yes, you are right in your findings with regards to this particular fund.

I suggest that you stay invested with the existing holdings in L&T Equity fund and not redeem it presently. It can continue to be in your portfolio.

For additional investments through SIP for your Long Term financial goals you can opt for - ICICI Prudential Value Discovery fund which is a good diversified equity fund in a similar category.

Q:I am investing Rs.2000/- in Axis Midcap Fund Growth and Rs.2000/- in Reliance Small Cap Fund Growth from the last 1 year in SIP mode. Returns from these funds are negative. Should I hold? -----Swarna kamal Chandra

A: Both the above mentioned funds are in Mid cap and Small cap category and by nature this category is aggressive and more volatile than the normal large cap or diversified equity fund category. If you have a long term horizon ( i.e 5 -7 year time horizon ) then surely you should continue holding these funds and continue your SIP. Both these funds have a good track record.

Obviously as the equity markets presently have been on a downside since the past couple of months due to global turmoil, there is bound to be a negative impact on these funds too. Do not get perturbed and continue with your investments.

Would suggest that in the near future, if you wish to invest further through monthly SIP's, then you should consider a pure large cap or balanced fund to give stability to your portfolio which presently consists of only mid and small cap funds.

Patience, perseverance and focus are the key to success over the Long Term in Equity Investments.
Q: My current mutual funds investments includes: Rs 15000/month in UTI mid cap fund(growth) since last one year. I have extended this SIP investment for next two years. Also, i have started new investments with Rs 10000/month in SBI Blue Chip, Rs 15000/month in Birla SL ultra short term fund. Both these SIPs have been added for next two years. I need these funds in next five years. Please suggest if portfolio is well diversified and if the funds are good? ----- Himanshu Goyal

A: Yes, the funds selected by you in terms of diversification are perfect i.e you have a large cap, Midcap fund and a Debt liquid fund.
Both the equity funds are good funds with a decent track record.

However, the Ultra Short Term Fund in your portfolio can be shifted to a good short-medium term debt fund as you have a time horizon of 5 years. You can look at Birla Sunlife short term opportunities fund which has a good track record and would serve your time horizon appropriately.