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Every year, I invest in new NFOs or existing ELSS funds for tax saving purpose. I have just checked and found out that I have around 25 different types of MFs, which are accumulated during the 6 years. Please suggest the streategy to manage the ELSS in better way -
1- Keep all the MFs and exit after 3 years, as and when the date comes?
2- Only buy the simmilar funds, which are performed and already in my kitty.
I am not an expert, but suggest you to reduce your holding to 5-6 funds only. Too much diversification is also bad.
I would go with point 2. And also check and reduce no of funds from your portfolio, which are not performing.Quote:
Originally Posted by Amit Kaushik
Three year the is min holding period for any ELSS fund. Review your MFs at that time, if you are getting good return/ matching your target -> Exit. If not and have option to change the MF, do that.Quote:
Originally Posted by Amit Kaushik
Yes, Do this exercise every year, before you buy ELSS or other MFs.Quote:
2- Only buy the simmilar funds, which are performed and already in my kitty.
If you diversify much, you would not get the profit. As per your post you have bought some NFOs. Please avoid that, always invest in the performing NFOs. Use MFs websites like valueresearchonline and moneycontrol for your analysis before buying any MFs.
Keep max to max 5-6 MFs. And review your investment portfolio every year.