विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं

Ans: You have started with a meaningful investment of nearly Rs.4 lakh, and the concern is understandable, especially when this is your first mutual fund experience. A low return after two years does not by itself mean that you selected wrong funds.

» What your current return tells you

– An absolute return of 1.52% and XIRR of 1.23% after around two years is certainly disappointing.

– However, judging an equity mutual fund portfolio only after two years can give a misleading picture.

– Equity investments can go through long periods of weak returns. The important question is not only what happened in the last two years, but whether the portfolio is suitable for your goal and investment horizon.

– So, I would not suggest exiting all your investments only because the current return is low.

» The bigger issue in your portfolio

Your three investments are not three completely different types of exposure.

– Business-cycle and manufacturing-oriented funds can have a strong sector or theme bias.

– A contra-oriented fund follows a different investment approach, but it is still an equity-oriented portfolio.

– Therefore, your Rs.4 lakh portfolio has meaningful dependence on particular investment styles and economic sectors.

This is more important than the fact that the return is currently low.

For a first-time mutual fund investor, I would generally prefer a well-diversified core portfolio rather than having a large portion concentrated in thematic or strategy-oriented categories.

» Should you hold for another two years?

Your agent is partly right that equity mutual funds should normally be given a longer horizon.

But simply saying "market was down, so wait two more years" is not enough.

The portfolio should be reviewed for:

– Your investment objective.

– Your total investment horizon.

– Your monthly SIP amount.

– Equity allocation required for your goals.

– Category diversification.

– Portfolio overlap.

– Risk level you can actually tolerate.

– Performance compared with the appropriate category and benchmark over a suitable period.

If these factors are satisfactory, continuing can make sense. If the portfolio structure itself is unsuitable, waiting another two years will not solve the underlying problem.

» Are you stuck in wrong funds?

I would not call them "wrong funds" merely because they have given low returns over two years.

The more relevant concern is whether they are the right categories for your overall financial plan.

A thematic or strategy-based fund can perform very differently from the broader equity market. Sometimes the theme works very well. Sometimes it can remain weak for a considerable period.

For a first-time investor, this can also create a psychological problem. When the portfolio does not perform, confidence falls quickly.

So, your loss of trust is understandable. But avoid making a second mistake by stopping equity investing completely because of a two-year experience.

» What I would do now

– Do not redeem everything immediately.

– Do not add fresh money blindly just because NAV has fallen or returns are low.

– Review the three holdings together as one portfolio.

– Identify how much of your total investment is concentrated in business-cycle and manufacturing themes.

– Build a stronger diversified core if your investment horizon is 7-10 years or more.

– Keep thematic exposure limited rather than allowing it to dominate the portfolio.

– Continue SIPs only after the overall asset allocation is reviewed.

– Keep money required within the next 3-5 years away from aggressive equity investments.

» Your first mutual fund experience

One important point here.

You have invested nearly Rs.4 lakh in two years. That is a good beginning towards creating long-term wealth.

Do not judge your entire mutual fund journey based on the first two years.

The real benefit of mutual funds comes from disciplined investing over a long period, proper diversification and staying aligned with your goals.

At the same time, "stay invested for the long term" should never become an excuse for not reviewing the portfolio.

A good investment professional should be able to explain why each category is being held, what role it has in your portfolio and what action should be taken if the investment does not perform as expected.

» What information is needed for a proper review

For a 360-degree assessment, I would need:

– Your age.

– Monthly income and monthly expenses.

– Current SIP amount in each fund.

– Present value of each investment.

– Your investment objective.

– When you need this money.

– Existing EPF, PPF, FD and other investments.

– Emergency fund availability.

– Insurance protection.

– Whether you have any loans.

With this information, the portfolio can be assessed as a complete financial plan rather than simply judging the present XIRR.

» Final Insights

Your current 1.23% XIRR is not a reason by itself to conclude that you are stuck in bad investments.

The bigger lesson is that your first portfolio appears to have meaningful thematic exposure. It deserves a proper category and asset-allocation review before you decide whether to continue, reduce or restructure.

Do not lose trust in mutual funds because of two weak years. But also do not continue blindly for two more years without understanding what you own and why you own it.

Best Regards,

K. Ramalingam, MBA, CFP,

AMFI-Registered MFD – ARN 4188

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/