I am 37 years old and doing below SIPs, please suggest if these are decent funds? Mirrae Asset Large & Mid Cap - 3000 Quant Small Cap - 5000 PGIM Mid Cap - 5000 Axis Mid Cap - 2500 Nippon Small Cap - 5000 UTI Nifty 50 Index - 3000 UTI Nift Next 50 Index - 2000 Parag Parikh Flex Cap - 3000

Ans: These are good enough funds

Ans: Hello Sandeep and thanks for writing to me. The funds you are investing in are good funds and you can continue to invest in them.

If you state your objectives, time horizon and other goals, I may recommend other funds.

Ans: Hello ,
As per the funds mentioned, I would firstly like to say that you don't need elss funds unless you want to save taxes under 80C
Your split of 50K can be as follows for a duration of 20yrs
Small cap - 25%
Mid cap - 25%
Multicap - 20%
Large and mid cap - 20%
Value fund - 10%
Can add thematic based funds as and when you spot an opportunity

Remember that past performance is not a guarantee for future returns, and it's always important to review your investments periodically to ensure they remain aligned with your financial objectives.

Ans: Hi Rahul, that's great that you're investing in Mutual Funds (MFs) with a monthly SIP of Rs. 25,000! Disciplined investing is a key to building wealth for your future goals. Let's discuss your current MF choices:

1. Diversification is Key!

You've chosen four Small Cap Funds. While Small Caps offer potentially high returns, they also come with higher risk. Spreading your investments across different asset classes (like Large Caps or Flexi Caps) can help manage risk.

Consider a Broader Mix: A Certified Financial Planner (CFP) can help you analyze your risk tolerance and investment goals. They can suggest a diversified portfolio with a mix of funds like Large, Mid, and Flexi Cap Funds to potentially achieve your goals with a balanced approach.

2. Actively Managed Funds:

Pick Winners! Your chosen funds are actively managed, meaning fund managers try to outperform the market by picking stocks they believe will grow. Actively managed funds can outperform the market, but there's no guarantee.

Do Your Research! Actively managed funds charge higher fees than passively managed Index Funds. Research the fund's track record, investment philosophy, and fees before investing.

3. Review and Rebalance:

Market Changes! The stock market keeps changing. What looks good today might not be suitable tomorrow. Regularly reviewing your portfolio with a CFP is important.

Stay on Track! Rebalancing your portfolio periodically helps you maintain your target asset allocation and manage risk. A CFP can guide you on how often to review and rebalance your portfolio.

Remember, building wealth is a marathon, not a sprint. Sticking to your SIP plan, staying diversified, and regularly reviewing your portfolio with a CFP will help you navigate the market fluctuations and achieve your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

Good to see your enthusiasm and commitment to disciplined investing at an early age.

You may replace your midcap fund with Sundaram Mid Cap fund.

Also you may make some allocation to Tata Digital fund and Mirae Asset Great Consumer Fund (thematic funds).

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.