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    Should I exit from ICICI Prudential Value Discovery Fund?

    Synopsis

    If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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    I would like to review my SIPs. Here's my portfolio:
    ICICI Prudential Banking and Financial Services Fund: Rs 1,000
    ICICI Prudential Bluechip Fund: Rs 1,500
    ICICI Prudential Long Term Equity Fund (Tax Saving): Rs 10,004
    ICICI Prudential Value Discovery Fund: 1,500

    Things You should consider
    • Annualized Return
      for 3 year: 1.37%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.9 Years
    Things You should consider
    • Annualized Return
      for 3 year: 1.83%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 3.0 Years
    Since ICICI Prudential Value Discovery Fund is underperforming, I would like to stop this SIP (not redeem). Also, I would like to stop the tax saver fund. My questions are:

    1. Is it a good idea to stop my current tax saver fund and start a new SIP in Axis Long Term Equity Fund?
    2. Should I stop SIP in Value Discovery Fund and start SIPs in the following funds:
    a) Nippon India Small Cap Fund: Rs 500
    b) Kotak Standard Multicap Fund: Rs 500
    c) Kotak Emerging Equity Fund: Rs 1,000.
    --Nikhil Joseph

    Puneet Oberoi, Founder, Excellent Investment Advisorz, responds:

    I am assuming that you are a moderate risk-taker. You shouldn't chase higher returns. All funds go through ups and downs. If you can't take the underperformance, I will recommend you to stop ICICI Prudential Value Discovery Fund and ICICI Prudential Long Term Equity Fund (Tax Saving) and start a new SIP in Axis Long Term Equity Fund. Also, ICICI Prudential Banking and Financial Services Fund is a sector fund. Sector funds are very risky. You should choose a multicap fund in its place, like Kotak Standard Multicap Fund. Also, investing in schemes from one fund house can be risky.
    (If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
    The Economic Times