Publication details: Money Manager – CNBC Bajar – 30-03-2016
Responses, opinion and view from Kartik Jhaveri.
Question sent by Vimalkumar Patel:-
I am a teacher in Bharuch. I was planning to start an SIP in Baroda Pioneer mutual fund. I want to know whether this is a safe scheme or not. Please guide me as to how I should proceed.
Advice given:
- Equity mutual funds are a very potential tool for long term wealth creation.
- They do have a certain amount of risk associated with them, however if you stay for invested for a long term of 8-15 years, they can generate a substantial amount of wealth.
- Opting for the SIP route is a wise move. You can invest the amount in the following manner:
- Large cap – 40%
- Mid and small cap – 40%
- Sectoral ย – 20%
- It is advisable to step up your SIP amount on an annual basis.
- Assuming you are referring to the Baroda Pioneer Growth fund, this scheme was launched in 2003. The performance of this scheme in the last 10 years is about 9.5%, which is below par as compared to the equity schemes. Hence you may want to rethink your decision and choose better performing schemes.
