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Diversified equity funds should form the core of your long term investment portfolio.

Solid recent performance is always tempting. After all as of June 21, the one-year return of UTI Infrastructure is at 56 per cent. Birla Sun Life Basic Industries is up 44 per cent and Birla Sun Life New Millennium is up 63 per cent during the same period. But it's a mistake to let your emotions drive investment decisions. The very time you want to buy is usually the time to sell, and vice-versa.

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