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Can I switch to DSP Midcap Fund from DSP Top 100 Equity Fund?

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

ET Online|
Aug 22, 2019, 03.56 PM IST
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I have started investing in DSP Top 100 Equity Fund through SIP in 2009. I discontinued the SIP recently. The fund value is Rs 164,513, against the investment of Rs 99,165. Kindly advise if I can switch to DSP Midcap Fund for better returns? I can hold for at least next seven years.
-- Krupa Krishnan


DSP Top 100 Equity Fund is an underperfomer in both the short-term and long-term horizons. The scheme is underperforming both its benchmark and category in one-, three-, five- and 10-year periods. It seems, you were not tracking the performance of the scheme in the last 10 years. You should always keep track of your mutual funds. You must review its performance against its benchmark and category at least once a year and take remedial steps if it is underperforming for more than a year or two.

You have not mentioned your risk profile. So, it is not possible to offer you a personalised advice.

Simply put, you should always choose your mutual funds based on your goals, investment horizon, and risk profile. You cannot jump from one mutual fund category to another for better returns. Investing in a large cap scheme is not the same as investing in a mid cap scheme.

DSP Top 100 Equity Fund is a large cap mutual fund. Large cap mutual funds are suitable for conservative equity mutual fund investors who want to create wealth over a long period without taking too much risk and volatility.

DSP Midcap Fund, as the name suggests, is a mid cap scheme is that suitable for aggressive investors with a very high risk tolerance level and stomach for volatility. You should not invest in this scheme only because of its potential to offer higher returns. You should invest in it only if you can take extra risk and volatility.
(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.)
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