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Ramalingam Kalirajan |2474 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Bikash on Apr 15, 2024Hindi

Hi sir, i have a 15yr investment horizon. I invest 20k/month in quant small cap, 10k/per month in Aditya Birla PSU Fund, 3k/month in SBI contra fund and 2k/month in axis small cap. And intermittently on Quant Infrastructure MF. Please let me know if the Mutual Fund portfolio is ok

Ans: I can provide some general observations based on your investment horizon and chosen funds.

Here's a breakdown of your portfolio:

Quant Small Cap Fund (20k/month): Invests in small-cap companies, which can offer high growth potential but also carry higher risk.
Aditya Birla PSU Fund (10k/month): Focuses on Public Sector Undertakings (PSUs), which can provide stability but may have lower growth prospects compared to broader markets.
SBI Contra Fund (3k/month): Aims to profit from both rising and falling markets, but these funds can be complex and require in-depth understanding.
Axis Small Cap Fund (2k/month): Similar to Quant Small Cap Fund, but with a different investment strategy for small companies.
Quant Infrastructure MF (intermittent): Invests in infrastructure companies, a sector with specific risks and opportunities.
General observations for a 15-year horizon:

Equity allocation: A large portion of your portfolio is in small-cap funds, which can be suitable for a long-term horizon but come with inherent volatility. Consider your risk tolerance for this concentration.
Diversification: You have some diversification across sectors (PSU, small-cap, infrastructure), but it might be beneficial to consider including a large/mid-cap fund or an index fund for broader market exposure.
Actively managed funds: Your portfolio consists of actively managed funds. These can outperform the market, but also underperform. Consider the expense ratios of these funds and how they compare to passively managed index funds.
Recommendations:

Review your risk tolerance: Ensure you're comfortable with the potential volatility of your current portfolio allocation, especially in small-cap funds.
Consider diversification: Explore adding large/mid-cap or index funds for a more balanced approach.
Research and evaluate: Research each of your fund choices to understand their investment objectives, holdings, and performance history.
Remember: This is just general information, not personalized advice. It's advisable to consult an AMFI Regd Mutual Fund distributor who can consider your specific financial goals, risk tolerance, and overall investment strategy. They can help you determine if your portfolio aligns with your needs for a 15-year investment horizon.

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