Hi there, I am 25 year old and I am planning to invest 25-30k in something not sure where so needed your help and I have existing monthly investment close to 8-9k Existing MF 1)Nippon india small cap direct growth 2)Bajaj Finserv balanced advantage fund direct growth 3) ICICI prudential commodities fund direct 4) digital gold 5) nifty bees Please tell me if this is the right approach

Ans: At 25, starting early is your biggest advantage. You’ve already begun investing. That itself is a good step. Now, you are thinking deeper. That is wise. You want to grow wealth steadily. You also want to avoid risky mistakes. That is the best mindset to have now.

Let’s now take a full look at your situation.

We will cover:

What is going right in your current plan

What can be improved

What to do with your new Rs. 25,000–30,000

Disadvantages of index funds and direct plans

Safer and smarter asset mix

Future goal planning from now

Role of Certified Financial Planner in wealth growth

Final insights for your age and journey

Your Current Portfolio Assessment:

You invest Rs. 8,000–9,000 monthly

You hold a small cap fund, balanced advantage, commodities, and digital gold

You also invest in Nifty Bees – an ETF tracking index

This is a diverse portfolio, but some gaps are there

Overall structure lacks stability and purpose right now

Let’s evaluate each choice separately.

Small Cap Fund:

High growth but high risk also

Small caps are volatile in short term

Better to hold small cap only if you have long-term view

Limit small cap exposure to 15–20% of total portfolio

SIP is the right way to invest here

Balanced Advantage Fund:

This gives equity and debt mix

It adjusts automatically based on market

Good for first-time investors

But do not depend only on this for long-term wealth

Commodities Fund:

Commodity funds are highly volatile

Mostly linked to oil, metals, or international prices

Not ideal for monthly SIP unless for a specific reason

Better limit to a small part of portfolio only

Does not create steady long-term wealth like equity mutual funds

Digital Gold:

Gold is a good hedge for risk

But should not be main part of investments

Keep 5–10% of portfolio in gold, not more

Avoid digital gold for large, long-term investments

It does not beat inflation in the long run

Nifty Bees (Index ETF):

You are investing in an index fund indirectly

Index funds do not have active fund managers

They follow market blindly, without adjustments

They perform poorly in falling markets

No downside protection at all

Actively managed mutual funds are better for this reason

Experts in active funds manage based on economy, not blindly copy index

So better to shift this part to an actively managed fund

Issues With Direct Mutual Funds:

You are choosing direct mutual fund plans

Direct plans do not have expert advisory built-in

No one is there to guide or do annual reviews

You may miss changing market signals or fund underperformance

Regular plans through MFDs with CFP support give guided decisions

You get proper allocation, rebalancing, and financial planning support

Performance difference may be higher in long run due to poor choices

Certified Financial Planner gives peace of mind and accountability

What Can Be Improved:

You need core stability in the portfolio

Right now, your mix is tilted towards high risk

You do not have large cap or flexi cap funds

No defined plan for future goals like house, marriage, etc.

No emergency fund or insurance mentioned in question

You are choosing funds in isolation without goal-based structure

What You Should Do With Rs. 25,000–30,000 Extra:

Use this monthly surplus wisely

Start SIP in actively managed flexi cap mutual fund

Add a large-cap fund for stability and size

Add a good hybrid equity-debt mutual fund for balance

Avoid more commodity, small cap, or sector-specific themes

Divide your Rs. 30,000 monthly like this:

– Rs. 10,000 into flexi cap mutual fund

– Rs. 10,000 into large cap mutual fund

– Rs. 5,000 into hybrid mutual fund

– Rs. 5,000 into liquid or ultra-short debt fund for short term goals

Keep digital gold limit to Rs. 500–1000 per month only

Stop index fund like Nifty Bees and shift to active mutual fund

Track fund performance every 6 months and rebalance once a year

Stick to regular mutual funds with Certified Financial Planner support

Goal-Based Investing Is Important:

Right now, you are investing without a defined goal

Define 3–5 goals now and assign money to each

Example: Emergency fund, buying vehicle, house down payment, marriage, travel

Assign each goal a time period and expected cost

Allocate funds accordingly – short, medium, and long-term buckets

Emergency fund should be Rs. 1.5 to 2 lakh at least

Use liquid funds to build this

Future goals like buying home or car in 3–5 years – use hybrid funds

Retirement goal can have more equity and flexi cap funds

Assign each SIP to one goal

Review goals once a year

Update your SIP amount as income grows

Asset Mix You Should Aim For:

Equity (large, flexi, hybrid) – 65%

Debt mutual funds or liquid funds – 20%

Gold – 5–7%

Emergency fund (cash or ultra-short debt fund) – 8–10%

Avoid commodities, index funds, and high-risk themes above 5–8%

Always link each investment to a purpose

Certified Financial Planner Can Help You:

You are young and still learning money skills

CFP will help you build a full financial roadmap

CFP guides on asset allocation based on your life stage

Also checks if funds are working well or need change

CFP helps you avoid poor choices and emotional investing

You also get help in taxes, documentation, and long-term planning

With a CFP, your plan becomes goal-based and stress-free

Finally:

You have started early, and that is your biggest asset

Your current funds need realignment and stability

Digital gold and commodities should be limited

Avoid index funds like Nifty Bees. They do not offer smart handling

Avoid direct funds. They lack guidance and make you invest blindly

Use regular mutual funds with support from Certified Financial Planner

Keep asset mix balanced between equity, debt, and gold

Always link each SIP to a goal. Do not invest without purpose

Rebalance portfolio every 12 months. Exit poor funds, add better ones

Focus more on time in the market, not timing the market

Review your income, goals, and risk every year. Update investments accordingly

Keep investing for 10–15 years with patience and plan

Wealth will grow automatically if you stay disciplined and guided

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment