I have mutual fund (MF) investments across several schemes and eight fund houses. I want to transfer my MF investments to one portal. How should I go about it?
Consolidation of holdings in a single platform is a good move, especially for a portfolio with several holdings. It makes the job of tracking and managing the portfolio easier. The transfer process depends on two factors—the current channel of investment and whether or not there is an active systematic investment plan (SIP) in the folios.
If your current channel of investment is online—that is if you have invested in the funds using the MF companies’ online platforms—then you would first need to convert the folios to “offline” folios. The reason is that a folio can be held online through only one service provider at a time. You can move it to the “offline” mode by making a request to the MF company. After that, you can transfer it to the portal of your choice by using their services.
The second factor is whether you have an active SIP running in the folios that you are transferring. Different MF companies treat transfer of such folios differently. Some disallow transfer of such a folio, while others discontinue the SIP after the transfer, and still others continue the SIP after the transfer. To avoid confusion, the prudent course would be to stop the SIP, transfer the folio and re-start the SIP with your new service provider.
I started two monthly SIPs in October. The funds are HDFC Top 200 (Rs 2,500) and Reliance Regular Savings Equity (Rs 2,500). I will continue this investment for 15-20 years. I want to add another Rs 10,000 to my SIPs. I plan to add Rs 2,500 each in HDFC Top 200 and Reliance Regular Savings, and start two new SIPs in DSP BlackRock Top 100 and IDFC Premier Equity. Are the choice of my funds right? Suggest some other options. Can I consider DSP BlackRock Equity and HDFC Mid-cap Opportunities?
Your current selection of funds broadly invest across market capitalizations. The funds have a good track record and can be reasonably trusted to do well in the future. The funds you plan to add are slightly more specialized than these two funds. DSP BlackRock Top 100 is a pure large-cap fund and invests in 100 largest companies by market capitalization.
IDFC Premier Equity and HDFC Mid-cap Opportunities are on the other end of the spectrum and invest in smaller companies. Either one of these, plus DSP BlackRock Top 100 would add variety to your portfolio. DSP BlackRock Equity is another multi-cap fund similar to the funds you already have in your portfolio.