I am 21 years old. I am currently in university and am already investing in equity mutual funds with the goal of wealth creation.

I am currently capped at a monthly SIP of 10k. My portfolio is:

1. Aditya Birla Sun Life Digital India Fund Direct Growth	Rs 1,500
2. Mirae Asset Emerging Bluechip Fund Direct Growth	Rs 2,000
3. Mirae Asset FANG+ FOF	Rs 1,000
4. Nippon India Pharma Fund Direct Growth	Rs 1,000
5. Quant Focused Fund DG	Rs 1,000
6. PGIM India Midcap Opportunities Fund DG	Rs 1,000
7. Quant Smallcap Fund DG	Rs 1,000
8. PGIM India Flexicap Fund DG	Rs 1,000
9. SBI Banking and Financial Services Fund DG	Rs 500

I have invested nearly Rs 2 lakhs in the above funds over the past two years with my portfolio's XIRR being 48.52 per cent.

I believe much of this is due to the current market highs.

What changes do you recommend to improve my portfolio in terms of securing current and future gains?

Ans: Too many funds, keep 1 fund in same / similar category. No further addition please! 

Ans: You may continue with 4 and 5 star rated funds; for remaining you may consider from below:

Equity - Value Fund:

• Tata Equity PE Fund - Growth
• UTI Value Opportunities Fund - Growth Plan

Equity - Multi Cap Fund:

• UTI Equity Fund – Growth
• Axis Multicap Fund – Growth

Equity - Large Cap Fund:

• UTI Mastershare Unit Scheme - Growth Plan
• LIC MF Large Cap Fund-growth

Equity - Mid Cap Fund:

• MOSL Midcap 30 Fund – Growth
• DSP midcap – growth

Equity - Small Cap Fund:

• Kotak Small Cap Fund – Growth
• Axis Small cap Fund - Growth

Ans: Hello Mr Chittanand , Glad to see you are already into investing. Kindly reduce number of schemes and same nature schemes. As far as shares are concerned portfolio looks good but do book profits when you get them.
Kindly let me know what advice you need as your question does not say so

Ans: Building a Diversified Investment Portfolio for Long-Term Growth
It's commendable that you're taking proactive steps to invest a portion of your salary in mutual funds and stocks for long-term wealth creation. Let's analyze your investment strategy and provide recommendations to optimize your portfolio for sustained growth.

Evaluating Your Current Investment Strategy
Your current approach involves investing Rs 7,500 per month in SIPs and allocating an additional Rs 2,000 monthly for purchasing individual stocks based on your own study. This demonstrates a balanced approach towards both mutual funds and direct stock investments.

Assessing Mutual Fund Selections
Your mutual fund portfolio consists of a mix of mid-cap funds, thematic funds, tax-saving fund, small-cap fund, and dynamic asset allocation fund. This diversification reflects a thoughtful selection across various segments of the market.

Disadvantages of Direct Funds
Investing directly in stocks requires in-depth research and expertise. It's important to recognize the risks associated with individual stock selection, including volatility and potential losses. Mutual funds offer professional management and diversification, mitigating such risks.

Benefits of Regular Plans through Certified Financial Planners
Investing through regular plans with the guidance of a Certified Financial Planner ensures that you receive expert advice and personalized recommendations. Regular plans offer continuous support and portfolio management, aligning with your long-term financial goals.

Disadvantages of Investing in Gold
While gold serves as a hedge against inflation and market volatility, investing in digital gold may not offer the same benefits as physical gold. Digital gold lacks the tangibility and security associated with physical gold investments.

Benefits of Actively Managed Funds
Actively managed funds have professional fund managers making strategic investment decisions. They aim to outperform the market by selecting high-potential stocks. Actively managed funds offer the potential for higher returns compared to passive index funds.

Disadvantages of Index Funds
Index funds passively track a market index and do not aim to outperform it. They lack the strategic decision-making of actively managed funds. For investors seeking higher returns and active management, index funds may not be the best choice.

Recommendations for Portfolio Optimization
Consider consolidating your mutual fund investments into fewer funds to simplify your portfolio and reduce overlapping holdings.
Evaluate the performance of your individual stock investments regularly and consider rebalancing your portfolio if needed.
Continue investing regularly in mutual funds through SIPs to benefit from rupee cost averaging and long-term compounding.
Review your investment strategy periodically with a Certified Financial Planner to ensure alignment with your financial goals and risk tolerance.
Conclusion
Your investment strategy reflects a balanced approach towards wealth creation, combining mutual funds and direct stock investments. By optimizing your portfolio, seeking expert advice, and staying disciplined in your investment approach, you can achieve long-term financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Given your investment goals of reaching 50 lakh in 10 years and 1.5 crores in 20 years, it's essential to maintain a diversified portfolio that aligns with your risk tolerance. Here's a brief analysis of your current investments:

Stock Portfolio: With around 7 lakhs invested, direct stock investments can provide high growth potential but also come with higher risk. Ensure proper research and diversification within your stock holdings.

Mutual Funds: Your mutual fund portfolio consists of a mix of flexi-cap, large-cap, mid-cap, and small-cap funds, providing diversification across market segments. This diversification can help manage risk while capturing growth opportunities in different market conditions.

To achieve your goals, consider the following:

Regular Review: Continuously monitor the performance of your investments and make adjustments as needed to stay on track towards your goals.

Asset Allocation: Ensure your asset allocation aligns with your risk tolerance and investment horizon. Consider rebalancing periodically to maintain the desired mix of assets.

Goal-specific Investments: Consider allocating funds specifically towards your long-term goals, such as retirement or education, to ensure you're on track to meet these objectives.

Risk Management: Given the mix of stocks and mutual funds, be mindful of overall portfolio risk and ensure appropriate diversification to mitigate risk.

By staying disciplined with your investment strategy, regularly reviewing your portfolio, and making adjustments as needed, you can work towards achieving your financial goals over the specified timeframes. Consider consulting with a financial advisor for personalized guidance tailored to your individual circumstances.