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Ramalingam Kalirajan |11027 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 22, 2026

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 Ankit on Jan 22, 2026Hindi

I am 28. I am investing in the mutual funds since September 2024, the sip is worth 20k with a step up of 10% every year. And i have invested my father's 30 lakhs in mutual fund as well through stp. The funds are as follows:- Icici large and mid cap- 8k Bandhan large and mid cap '- 4k Nippon India small cap- 4k Hdfc fifty- 4k Icici balanced advantage fund- 5 lakhs Icici retirement fund- 7.5 lakhs Icici thematic advantage fund of fund- 7.5 lakhs Hdfc multi cap- 5 lakhs Motilal large and mid cap- 5 lakhs Please guide me me on this . What do you reckon looking at the portfolio.

Ans: I appreciate the discipline you have shown at a very young age. Starting SIPs at 28, doing annual step-up, and responsibly handling your father’s Rs 30 lakhs through STP shows maturity and intent. This gives you a strong base to build on, provided the structure is refined.

» Overall portfolio structure – what is working well
– You have exposure across large, mid, and small companies
– SIP with 10% step-up is a very healthy habit for long-term wealth
– STP instead of lump sum investing for your father’s money reduces timing risk
– Use of a balanced style fund adds some stability to the portfolio
– Time is clearly on your side due to your age

» Key concern – overlap and repetition risk
– Too many funds are playing in the same large & mid cap space
– Multiple funds chasing similar stocks reduces true diversification
– Returns may look different on paper, but portfolio behaviour will be similar
– Over-diversification increases monitoring burden without improving outcome
– Fewer, well-chosen funds usually work better than many similar funds

» SIP side review – equity concentration
– Large & mid cap exposure is high across multiple funds
– Small cap allocation is present, which suits your age, but needs control
– Small caps can give high returns but also fall sharply during corrections
– SIP amount should not be emotionally disturbed during market falls
– Portfolio needs clearer role definition for each category

» About index-style fund exposure
– Market-linked funds that simply track an index move fully up and fully down
– There is no downside protection during market corrections
– No flexibility to reduce risky sectors when valuations are high
– Active funds can shift allocation based on market and earnings cycles
– Over long periods, active management helps control volatility better

» Father’s Rs 30 lakhs – risk suitability check
– This money is not yours emotionally or financially
– Capital protection matters more than aggressive growth here
– Too much thematic and equity-heavy exposure increases stress risk
– Retirement and thematic oriented funds tend to have lock-in or style rigidity
– Your father’s age, income needs, and comfort must guide allocation

» Thematic and retirement-oriented funds – caution required
– Thematic funds depend on cycles which may stay weak for long periods
– They can underperform for years even in rising markets
– Retirement-labelled funds still carry equity risk, name alone does not reduce risk
– Such funds should never dominate a parent’s core money
– Simplicity and predictability matter more for family money

» What needs correction, not panic
– Reduce duplication in large & mid cap funds
– Keep small cap exposure meaningful but not excessive
– Re-align father’s money toward stability and smoother return path
– Avoid adding new funds unless there is a clear gap
– Focus on goal-based buckets, not fund count

» Behavioural discipline – the silent risk
– Avoid checking returns daily or monthly
– Do not react to short-term underperformance
– Step-up SIP only if income growth supports it
– Never use father’s portfolio for experiments or trends
– Consistency will matter more than fund selection over time

» Finally
– Your intent and discipline are strong, which is rare at this age
– Portfolio needs simplification, not replacement
– Active equity funds should remain the core growth drivers
– Parent’s money must be treated with extra safety and respect
– With minor restructuring and patience, this portfolio can do very well

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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