27-Year-Old Looking to Diversify Portfolio with Increased Investment - Need Help!

Ans: Hi,

You have a good diversified portfolio across market caps and the funds are also good for long term investing.

Please continue and increase SIP amount when your income rises. If you stay invested for a long term, the portfolio has potential for a good wealth creation.

Thanks & Regards
Janak Patel
Certified Financial Planner.

Ans: Your Current Snapshot

Age: 47 (Govt. job with Old Pension Scheme = retirement income assured)

Current Corpus:

Mutual Funds = ?29 lakh

PF = ?40 lakh (safe, debt side)

Target: ?50 lakh in 3 years for child’s education (currently in 8th grade).

Investments: ?50k SIP (planning to add ?25k = total ?75k/month).

Portfolio Diagnosis

1. Equity Exposure Too High for 3-Year Goal
Most of your SIPs are in equity (mid/small/large cap). Equities need 5+ years to reduce risk. In 3 years, markets may or may not cooperate. For a fixed goal like education, you cannot rely fully on market timing.

2. Over-Diversification
You have 11 schemes, many overlapping.

Mirae Large Cap + Axis Large Cap + Canara Robeco Large Cap → duplication.

3 small caps → unnecessary for a 3-year goal, very high risk.

3. Gold ETF
Good hedge, but will not contribute majorly in 3 years. Keep but do not increase allocation.

What You Should Do

Step 1: Secure the Goal (Child’s Education)
Target is ?50 lakh in 3 years. Already at ?29 lakh.
To make sure money is safe, shift at least 50–60% of existing corpus gradually into:

Short Duration Debt Fund

Banking & PSU Debt Fund

Corporate Bond Fund

Ultra Short Term / Arbitrage Fund (if you want very low risk).

This ensures that even if stock markets fall, the education money is not affected.

Step 2: New SIP Allocation (?75k/month)
Instead of adding more small/midcaps, diversify better:

Equity (40%) ~ ?30k

1 Flexi Cap (UTI Flexi Cap is fine, continue ?10k)

1 Large & Mid Cap (Mirae L&M, continue ?10k)

1 Midcap (HSBC Midcap, continue ?10k)

Debt (40%) ~ ?30k

Banking & PSU / Corporate Bond Funds (~?15k)

Short Duration Debt (~?15k)

Gold / Hybrid (20%) ~ ?15k

Nippon Gold ETF (?5k, continue)

Quant Multi Asset (?10k, continue)

This balances growth with capital safety.

Step 3: Strategy to Reach ?50L in 3 Years

If you shift 50% of current corpus (~?15 lakh) to debt and follow the above SIPs, you should safely cross ?50–55 lakh in 3 years.

Staying 100% in equities could give ?60 lakh, but the risk is you may also fall short and end near ?40 lakh.

Key Advice

Equity is suitable for goals beyond 5 years.

Child’s education is a fixed timeline goal, so shift part of the corpus to debt now.

Reduce scheme count from 11 to around 6–7.

Consult a Mutual Fund Distributor (MFD) to fine-tune scheme selection and execution.
Please consult a QPFP / AMFI-registered MFD to select right schemes & plan tax-efficient SWP.
Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing.

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
https://members.networkfp.com/member/naveenkumarreddy-vadula-chennai