Increase SIP in Existing Mutual Funds or Choose New Ones? Smart Strategies for Indian Investors

 As investors become more disciplined with their SIPs (Systematic Investment Plans), a common question arises:

“My mutual fund portfolio is doing well, and I want to increase my monthly SIP investment. Should I invest more into my existing funds or explore new ones?”

Let’s dive deep into this question using a real-world scenario and guide you through a logical decision-making approach.

🔍 The Scenario

  • Current Monthly SIP: ₹25,000

  • Number of Funds: 5

  • Average Return (XIRR): 18%

  • Top-Performers: 2 funds are outperforming their categories

  • Plan: Increase SIP by ₹8,000/month

This is a great situation to be in—consistent investing and strong returns. But with more money to allocate, the right strategy becomes essential.

Existing vs new SIP funds
🔄 Option 1: Increase SIP in Existing Funds

✅ When is this a good idea?

  • You’ve already built a well-researched portfolio.

  • Your top-performing funds have a proven track record.

  • You want to keep things simple and strengthen your existing allocation.

📊 Benefits:

  • Continuity: No need to study new schemes.

  • Cost Efficiency: You benefit from rupee cost averaging.

  • Performance Trust: You already know how these funds behave in different market conditions.

  • Tax Simplicity: No additional tracking for short- or long-term capital gains in new folios.

👎 When to be cautious:

  • If you're already overexposed to a particular sector (e.g., technology-heavy funds).

  • If fund size has become too large and is losing agility.

  • If any existing fund is no longer aligned with your goals.

🌱 Option 2: Start SIP in a New Fund

✅ When is this a good idea?

  • You want to explore new sectors, themes, or strategies (e.g., international funds, flexi-cap, ESG).

  • You wish to diversify risk by not concentrating too much in existing funds.

  • There’s a new opportunity (like an NFO or thematic fund) that aligns with your long-term goals.

📊 Benefits:

  • Diversification: Reduces reliance on current funds.

  • Tactical Allocation: New funds may tap into different economic cycles or market trends.

  • Flexibility: You can test with a smaller SIP and increase later.

👎 Risks:

  • New funds or NFOs may not have performance history.

  • Takes time to assess fund manager capability.

  • Might increase the complexity of portfolio tracking.

🧠 What Should You Do? – The Balanced Strategy

Based on your situation (good returns and only two top performers out of five), here’s a suggested approach:

🔄 1. Top-Up Existing SIPs in Performing Funds

Allocate around ₹5,000–₹6,000 from your ₹8,000 to the 2 best-performing funds in your current portfolio. This leverages their consistent performance.

🌱 2. Explore New Fund for Remaining Amount

Use the remaining ₹2,000–₹3,000 to try a new fund—ideally in a different category. For example:

  • If you have all large-cap funds, try a mid-cap or flexi-cap

  • If your portfolio is domestic, consider a global or thematic fund

This strategy helps you:

  • Stick with what works

  • Test and grow through new exposure

  • Reduce risk of putting all eggs in one basket

🎯 Final Thoughts

Increasing your SIP is always a wise step—you're investing in your future. But how you increase it is equally important.

Take a strategic approach: build upon proven performers and cautiously explore new opportunities. Review your portfolio once every 6–12 months, and don’t let emotions guide your decisions.

👨‍💼 About WealthCare Vest by Ragoel

"Caring for your wealth, strengthening your investment."
WealthCare Vest by Raghav Goel is a trusted financial guidance platform helping Indian investors make smart, goal-aligned, and disciplined financial decisions—whether you're just starting or already growing your wealth.

📱 Let us help you take the next step in your investment journey:
🔗 Connect with WealthCare Vest  https://linktr.ee/wealthcarevest

⚠️ Disclaimer✌

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This article is for informational purposes only and does not constitute financial advice. Always consult a certified financial advisor before making investment decisions.


Location: Himachal Pradesh, India

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