The answer will vary from person to person but the following points can guide you.

· When you are planning an equity-SIP for long term wealth creation then stick to diversified equity fund. Sectoral funds and thematic funds may appear to be exciting but they go against the basic grain of mutual fund investing which is diversification.

· Look at the past returns and also look at the consistency of returns. You are more interested in funds that can give above average returns consistently over a period of times. In fact, you can go to various websites and simulate SIP returns on various funds before arriving at your decision.

· A fund is about its portfolio holdings and hence you need to evaluate the fund portfolio closely before starting a SIP. If a diversified fund is trying to chase alpha by getting into small cap stocks then you need to be cautious. Similarly, if the fund is getting too concentrated in a particular sector or theme also you need to be cautious.

· Ensure that fund manager of the particular fund has been around for some time. A fund’s philosophy is reflective of the philosophy of the fund manager and hence the consistency of strategy is very important. That is only possible if the same fund manager is around long enough to make an impact.