I am a 29-year- old home maker. I have been investing through the SIP mode in Canara Robeco (₹ 3,000), for the long term. My sister, aged 20, is investing in Sundaram Select Focus (₹5,000). We want to continue these investments for 20 years (commenced March 2018). Should we continue in these mutual funds, and what should we expect individually? What is the procedure to discontinue?

Neethu Gilbert

You have not specified the exact scheme name from the house of Canara Robeco. So, it would be difficult to comment on the fund.

With reference to Sundaram Select Focus, it is a fund with a reasonable track record. But there are several large-cap funds that have delivered better performances.

You can ask your sister to stop SIPs in Sundaram Select Focus and start fresh investments in Axis Bluechip instead.

If she wants a multi-cap fund with moderate risks, she can consider Parag Parikh Long Term Equity, a fund with an excellent track record in value-investing.

Most fund houses ask for a minimum number of SIPs, usually six instalments, before they can be stopped. You can write to the fund house with the relevant form to stop your SIP. If you have been investing online, cancelling SIPs is easier, and usually involves only a few clicks. Usually, it can take a few weeks to stop a SIP. So, do keep your bank funded for additional debit in case your SIP date is due soon.

You cannot afford to just start an investment for 20 years and take it easy. Investments need to be reviewed once a year and corrective actions ought to be taken, if necessary.

As your surplus increases, you can add other funds from the mid- and multi-cap categories to improve your portfolio’s returns. You must also invest in debt instruments so that you create a balanced portfolio that reflects your risk appetite and the time left for achieving your goals.

Send your queries to mf@thehindu.co.in

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