Hi Sir I am 34 years old earning aroung 70k/m 16 k savings /month Could you please review my MF portfolio should i make any changes ET money high growth 5k/m started this year DSP Tax saver- started May 2017 3k/m CanRob Tax saver Jan 2021 2k/m quant tax PPFFAS Flexi Started Jan 2021- 2k/m DSP small - lumpsum 160000 DSP quant - lumpsum 105000 Quant small cap 1k/m Motilal Oswal Nasdag 100 FOF 1k/m Motilal Oswal Midcap 1k/m started this year PGIM India Midcap Opportunities Fund Direct-Growth 1k/m started this year SBI Bluechip lumpsum 10000 UTI Mid - July2021 1k/m Stopped DSP Mid - July 2021 1k/m Stopped UTI Flexi - July2021 1k/m stopped PPF 500/m i am planning to stop CanRob Tax saver and start Quant Tax Plan Direct-Growth and start below MFs as well SBI Contra Direct Plan-Growth Mirae Asset NYSE FANG+ ETF FoF Direct - Growth

Ans: Hello Vineeth. Thanks for sharing your current investments in Mf. Regarding your question for PF review. Other than UTI flexi, all funds can be invested for a long term. I would suggest to start again sips in PPFFAS Flexicap fund.

Ans: Assessment of Your Mutual Fund Portfolio:

Your Current Holdings:

You've shown commendable discipline in your investment journey with a monthly surplus of Rs. 16,000.
Your portfolio demonstrates a diversified mix of mutual funds across various categories, indicating a thoughtful approach towards wealth accumulation.
It's evident that you've been investing systematically, which is a prudent strategy for long-term wealth creation.
Your allocation to tax-saving funds is strategically aligned with your financial goals, ensuring tax efficiency while building wealth.
Areas of Consideration:

While your portfolio appears well-structured, it's crucial to periodically review and rebalance to align with your evolving financial objectives and market conditions.
The decision to halt investments in certain funds in July 2021 indicates a proactive stance towards optimizing your portfolio.
Lumpsum investments in specific funds indicate confidence in their potential, but it's essential to monitor their performance regularly.
The absence of index funds in your portfolio raises the question of whether you've explored their benefits adequately.
Recommendations:

Regularly reviewing your portfolio's performance and rebalancing it in line with your financial goals is imperative.
Consider diversifying into index funds to harness the benefits of low-cost, passive investing, especially in segments where actively managed funds may underperform.
Direct funds offer lower expense ratios, but investing through a Certified Financial Planner can provide personalized advice and ongoing support, enhancing the overall value of your investments.
In conclusion, your portfolio reflects a disciplined and diversified approach towards wealth creation. However, exploring the benefits of index funds and leveraging the expertise of a Certified Financial Planner could further optimize your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: It's excellent to see your commitment towards investing for both short-term goals like buying a house and long-term goals like retirement. Let's review your portfolio and suggest any adjustments:
1. Motilal Oswal Nasdaq 100 Fund Direct Growth: This fund provides exposure to the top 100 companies listed on the Nasdaq stock exchange, offering diversification and growth potential in the global tech sector. It can be a suitable addition for long-term wealth accumulation.
2. UTI Nifty 50 Index Fund: Investing in an index fund like UTI Nifty 50 offers exposure to the top 50 companies in the Indian equity market. It provides stability and diversification, complementing your other equity investments.
3. ICICI Prudential Bluechip Fund Direct Growth: Bluechip funds focus on large-cap stocks with strong fundamentals, making them relatively less volatile. It's a prudent choice for stability and capital preservation.
4. HDFC Balanced Advantage Fund Direct Growth: This fund dynamically manages its equity exposure based on market conditions, offering a blend of growth and downside protection. It can be suitable for investors seeking a balanced approach.
5. HDFC Midcap Opportunities Fund Direct Plan Growth and AXIS Small Cap Fund Direct Growth: These funds provide exposure to mid-cap and small-cap segments, respectively, offering growth potential but with higher volatility. Ensure you're comfortable with the risk associated with these segments.
6. JM Value Fund Direct Growth and Parag Parikh Flexi Cap Direct: Both these funds follow value investing principles and focus on investing in fundamentally sound companies at reasonable valuations. They can be suitable for long-term wealth creation.
7. Nippon India Corporate Bond Fund Direct Growth: Investing in a corporate bond fund provides stability and income generation through fixed-income securities. It's a prudent choice for diversification and managing risk.
8. P2P Investment: Peer-to-peer lending can offer attractive returns but comes with higher risk compared to traditional investments. Ensure you've assessed the risk-reward profile and have a diversified portfolio to mitigate risks.
Index Funds:
• Index funds offer broad market exposure by tracking a specific index, such as the Nifty 50 or the Nasdaq 100. They provide diversification and low-cost access to the market, making them suitable for long-term investors.
• However, index funds are passively managed, meaning they aim to replicate the performance of the underlying index rather than outperforming it. While this reduces management fees and turnover costs, it also limits the potential for alpha generation.
• As a result, index funds may not capture opportunities for outperformance during market upswings or provide downside protection during downturns. Investors seeking higher returns may prefer actively managed funds that aim to outperform the market through strategic stock selection and portfolio management.
Direct Funds:
• Direct funds allow investors to purchase mutual fund units directly from the asset management company, bypassing intermediaries like distributors or brokers. This can result in lower expense ratios compared to regular funds, as there are no distributor commissions involved.
• However, direct fund investors are responsible for conducting their own research, selecting suitable funds, and monitoring their investments. This requires a certain level of financial literacy and investment expertise to make informed decisions.
• On the other hand, investing through a Certified Financial Planner (CFP) who holds the necessary credentials and expertise can provide valuable guidance and support. A CFP can help investors navigate the complexities of the financial markets, select appropriate investment strategies, and optimize their portfolio allocations based on individual goals and risk tolerance.
Considering your investment portfolio, it's essential to evaluate the role of both index funds and direct funds in achieving your financial objectives. While index funds offer cost-effective market exposure, direct funds provide the potential for active management and outperformance.
As a Certified Financial Planner (CFP), I recommend a balanced approach that incorporates both index funds and direct funds based on your risk profile and investment goals. Periodic reviews of your portfolio and ongoing guidance from a CFP can help ensure that your investment strategy remains aligned with your evolving needs and objectives.
Remember, investing is a journey, and it's essential to stay informed, stay disciplined, and seek professional guidance when needed. With the right approach and support, you can navigate the financial markets with confidence and work towards achieving your long-term financial goals.

Ans: Review of Your Mutual Fund Portfolio
Let's assess your current mutual fund portfolio and provide suggestions to optimize it.

Current Portfolio Breakdown
Baroda BNP Paribas Multi Asset: Rs 5,00,000
SBI Balanced Advantage: Rs 2,00,000
HDFC Manufacturing Fund: Rs 2,00,000
Bandhan Innovation Mutual Fund: Rs 2,00,000
SBI PSU Fund: Rs 1,00,000
SBI Next 50 Index Fund: Rs 1,00,000
HDFC Multicap Fund: Rs 2,00,000
SIP in SBI 250 Small Cap Index Fund: Rs 3,000 per month
SIP in ICICI Bluechip Fund: Rs 3,000 per month
SIP in Motilal Oswal Midcap Fund: Rs 3,000 per month
Analysis and Evaluation
Diversification:

Your portfolio includes a mix of equity, balanced, and sector funds.
This diversification helps in risk management.
Sector Funds:

HDFC Manufacturing Fund and SBI PSU Fund are sector-specific.
Sector funds can be risky due to lack of diversification.
Index Funds:

SBI Next 50 Index Fund and SBI 250 Small Cap Index Fund are passive investments.
Index funds do not outperform the market and lack active management.
Balanced Advantage Fund:

SBI Balanced Advantage Fund balances equity and debt.
This provides stability during market volatility.
Multicap Funds:

HDFC Multicap Fund offers diversification across large, mid, and small caps.
This reduces concentration risk.
Recommendations
Reduce Sector Exposure:

Consider reducing your investment in sector funds like HDFC Manufacturing and SBI PSU Fund.
These funds are less diversified and can be volatile.
Shift from Index Funds to Actively Managed Funds:

Index funds like SBI Next 50 and SBI 250 Small Cap Index Fund lack active management.
Actively managed funds can potentially offer better returns.
Increase Exposure to Actively Managed Funds:

Increase investment in actively managed funds such as multicap, large-cap, and mid-cap funds.
These funds are managed by professionals who can make informed investment decisions.
SIP in Balanced and Multicap Funds:

Continue your SIP in ICICI Bluechip and Motilal Oswal Midcap funds.
Consider adding more SIPs in balanced advantage or multicap funds.
Diversify Across Asset Classes:

Continue investing in multi-asset funds like Baroda BNP Paribas Multi Asset.
These funds offer a mix of equity, debt, and other assets for better diversification.
Suggested Portfolio Allocation
Equity Funds:

Large Cap Funds: 30% of your portfolio.
Mid Cap Funds: 20% of your portfolio.
Multicap Funds: 25% of your portfolio.
Reduce sector funds to 10% of your portfolio.
Balanced Funds:

Balanced Advantage Funds: 15% of your portfolio.
Multi-Asset Funds:

Continue with Baroda BNP Paribas Multi Asset.
Final Insights
Your portfolio is well-diversified but can be optimized by reducing sector-specific and index funds. Increase allocation to actively managed large, mid, and multicap funds. This strategy will potentially enhance returns and manage risks better. Regularly review and rebalance your portfolio to stay aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in