ICICI SIP Mutual Funds: Are They Worth Investing?

Hi, I recently invested in five different ICICI SIP (Systematic Investment Plan) mutual funds, but noticed that they are not listed among the top performing funds on Quora and other online sources. Let's delve into the details of these funds and discuss whether they are worth investing in.

The Managed Funds

The funds I invested in are as follows:

Value Discovery Fund - Growth Blue Chip Fund - Growth Banking and Financial Services Fund - Growth Multi Asset Fund - Growth

Each fund is invested with a monthly amount of Rs 5,000, and there are a total of four funds, not five as mentioned in the initial question.

Common Mistakes to Avoid in Mutual Fund Investments

There are a few common mistakes that one should avoid while choosing and investing in mutual funds:

Research First, then Invest: It is crucial to conduct thorough research on the funds before making any investment. In your case, investing immediately without proper research might not be the best approach. Diversification: Buying funds from a single fund house is not ideal. It's essential to diversify across multiple fund houses to spread risk. ICICI Pru, for example, follows a value investing strategy, which might not perform well in a market with high valuations. Focus on Performance: Look at the AUM ( Assets Under Management) and performance over the past 5 or 10 years to make informed decisions. Customized Investment Approach: Each investor's time horizon and goals should be considered. What works for one person may not work for another.

Current Performance and Recommendations

Currently, none of the ICICI funds, except for the ICICI Pru Balanced Fund, are performing well. Consequently, investing in other ICICI funds should be avoided for now. Instead, consider diversifying your portfolio by investing in funds from different fund houses.

Best Practices for Selecting Mutual Funds

When selecting mutual funds, it's important to consider a few key aspects:

AUM and Past Performance: Look at the AUM and the fund’s past performance to gauge its reliability and potential for future growth. Time Horizon: Align your investment with your time horizon. A short-term horizon might look different from a long-term horizon. Portfolio Diversification: Keep your portfolio diversified to minimize risk. Aim for no more than four funds unless you are comfortable with a higher level of diversification.

Contact for a Customized Portfolio

For a personalized and customized investment portfolio, feel free to contact me. My contact details are available on my profile page.

Conclusion

ICICI SIP mutual funds, while not performing as well as they might have in the past, still offer an opportunity for long-term growth. However, it's essential to conduct thorough research and diversify your portfolio to achieve the best results. Follow the best practices outlined above to make informed investment decisions.