I am 31 years old. My child is 2.5 years old.

Currently investing for three years.

Long term goals:
For my child's education when he turns 18 years -- Rs 2 crores.
For his marriage -- Rs 50 lakhs
For our retirement -- Rs 2 crores

Currently investing in:

Mutual Funds	Plan type	Amount
1. HDFC Mid-Cap Opportunities Fund	Growth	Rs 1,500
2. HDFC Flexi Cap Fund	Growth	Rs 1,500
3. ICICI Prudential Value Discovery Fund	Growth	Rs 1,000
4. Motilal Oswal Midcap 30 Fund	Regular Plan -- Growth	Rs 1,000
5) Axis Bluechip Fund	Direct Plan -- Growth	Rs 1,000
6) HDFC Life Click2Invest ULIP		Rs 5,000
7) Axis Quant Fund	Direct Growth	Rs 1,000

Please suggest whether these are ok or not.

How much corpus it would generate in next 20 years if I continue like this?

I need to invest another Rs 8,000 monthly. Which fund to invest in?

Ans: Please break the above details in SIP and lump sums for me to advise properly.

Ans: Please break the above details in SIP and lump sums for me to advise properly.

Ans: Too many funds, almost all stocks available are there in this combined portfolio. Overdiversification is killing the performance; at present markets are high, so it would not have impacted, however in the downturn it will underperform hugely.

Kindly break the portfolio person wise along with age of the person and share details

Equity / Hybrid Schemes and Couple of Debt funds should be sufficient for each person.

Ans: Too many funds, almost all stocks available are there in this combined portfolio. Overdiversification is killing the performance; at present markets are high, so it would not have impacted, however in the downturn it will underperform hugely.

Kindly break the portfolio person wise along with age of the person and share details

Equity / Hybrid Schemes and Couple of Debt funds should be sufficient for each person.

Ans: Your commitment to investing for the future is commendable. Investing with a horizon of 12-15 years provides ample time for your investments to grow. Let’s review and optimise your portfolio for better returns and balanced risk.

Current Investment Overview

Your current investments include a mix of small-cap, mid-cap, flexi-cap, and sectoral funds. Diversification across these categories is a prudent strategy, reducing risk and enhancing potential returns.

Analysing Fund Selection

Your selection of funds indicates a balanced approach. Small-cap and mid-cap funds offer high growth potential but come with higher risk. Flexi-cap and large-cap funds provide stability, balancing your portfolio.

Investment in Direct Funds

Direct funds have lower expense ratios, increasing your returns over time. However, they lack the professional guidance available through regular plans. Investing through a Certified Financial Planner can provide tailored advice and oversight.

Disadvantages of Index Funds

Index funds track market indices, potentially limiting returns. They lack the adaptability of actively managed funds, which adjust to market conditions for better performance.

Advantages of Actively Managed Funds

Actively managed funds offer professional management, adapting to market changes. This flexibility can result in higher returns compared to passive index funds.

Kids’ Investment Portfolio

Investing for your kids' future in small-cap and mid-cap funds is a smart choice. These funds have the potential for higher returns over a long investment horizon. Ensure you periodically review and adjust the portfolio as needed.

Periodic Review and Rebalancing

Regularly reviewing and rebalancing your portfolio ensures it remains aligned with your financial goals. This proactive approach optimises returns and manages risks effectively.

Creating a Comprehensive Financial Plan

Consider other financial aspects like emergency funds, insurance, and tax planning. A holistic financial plan ensures a secure and well-rounded approach to wealth creation.

Monitoring Market Trends

Stay informed about market trends and economic factors. This knowledge helps you make timely adjustments to your investments, maximising returns and mitigating risks.

Conclusion

Your disciplined investment strategy and diversified portfolio are commendable. With regular review and professional guidance, you can achieve your financial goals and secure a bright future for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in