Should I continue my SIP in Reliance Small Cap Fund?

Reliance Is The World’s Costliest Energy Stock To Own

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Oct 12, 2018, 05.00 PM IST

I am doing SIP in Reliance Small Cap Fund- direct plan, development option- for the final two months. Some of my associates are suggesting that it is not scheme and extra loss can occur. What ought to I do? I deliberate to take a position for 5 years.
— Jainmiah Shaik

Deepali Sen, Founder, Srujan Financial Advisors, responds:

Investing in smallcap funds exposes the investor to one of many highest ranges of volatility in fairness funds. One shouldn’t make investments greater than 5 per cent of the full fairness portfolio in smallcaps, after investments have been made in largecaps and multicaps.

Given that you just do not need any publicity to largecap funds, it is advisable begin constructing your portfolio by investing in largecap concepts like Aditya Birla Sun Life Frontline Equity Fund, SBI Bluechip Fund and ICICI Prudential Bluechip Fund. Also, it is advisable earmark a time horizon of a minimum of seven years for fairness funds.

(If you’ve any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of consultants.)




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