I am 39 and have been investing through Monthly SIPs in the below Funds, please let me know your expert suggestions on these-whether to retain/exit

DSP Small Cap Fund 2000

UTI Children's Career Fund 1000

DSP Equity Opportunities Fund 3500

DSP Healthcare Fund 2000

Canara Robecco Tax Saver 5000

Mirae Asset Emerging Bluechip Fund 2000

SBI Gold Fund 1000

SBI Focussed Equity Fund 2000

DSP US Flexible Equity Fund 5000

Kotak Balanced Fund 2000

Ans:

Ans:

Ans: Review and Recommendations for Your Mutual Fund Portfolio
Overview of Your Current Investments
You have a diversified portfolio with the following SIPs and a lump sum investment:

SBI Contra Fund: ?2,000/- per month
SBI Small Cap Fund: ?2,000/- per month
SBI Retirement Benefit Fund Aggressive Growth: ?2,000/- per month
SBI PSU Fund: Lump sum ?11,000/-
Quant Small Cap Fund: ?1,000/- per month
ICICI Prudential Infrastructure Growth Fund: ?500/- per month
Compliments on Your Investment Strategy
Your disciplined approach to investing through regular SIPs is commendable. Investing in a variety of funds shows your understanding of diversification. This strategy helps mitigate risks and enhances the potential for growth.

Analytical Review of Your Portfolio
SBI Contra Fund:

Contra funds invest in undervalued stocks, anticipating future growth.
These funds can offer high returns but come with increased risk.
Consider if this aligns with your risk tolerance and investment horizon.
SBI Small Cap Fund:

Small cap funds can generate significant growth over time but are highly volatile.
Ensure this fund aligns with your risk appetite and long-term goals.
SBI Retirement Benefit Fund Aggressive Growth:

This fund focuses on long-term growth for retirement.
It's a good choice for aggressive investors aiming for high returns over time.
SBI PSU Fund:

Investing in Public Sector Units can be beneficial but is sector-specific and carries concentration risk.
Regularly review this fund's performance and the overall sector outlook.
Quant Small Cap Fund:

Like the SBI Small Cap Fund, this fund offers high growth potential with high risk.
Diversifying within the small cap segment might not be necessary.
ICICI Prudential Infrastructure Growth Fund:

Infrastructure funds invest in infrastructure-related companies.
These funds can provide good returns during economic growth periods but are sector-specific and volatile.
Recommendations for Portfolio Improvement
Diversify Across Market Caps and Sectors:

Your portfolio has a significant focus on small cap and sector-specific funds.
Consider adding a large cap or a diversified equity fund to balance risk and stability.
Consolidate Small Cap Investments:

Holding multiple small cap funds may not be necessary.
You can consolidate into one fund to avoid overlap and simplify management.
Review Sector-Specific Funds:

Sector-specific funds like PSU and Infrastructure can be volatile.
Regularly monitor their performance and consider switching to more diversified funds if needed.
Consider Professional Management:

Direct funds have lower expenses but require active monitoring.
Investing through a certified financial planner can provide professional management and potentially better returns.
Steps for Continued Success
Regular Portfolio Reviews:

Periodically review your portfolio to ensure it aligns with your goals and market conditions.
Make adjustments as needed to stay on track.
Increase SIP Amounts Gradually:

As your income grows, consider increasing your SIP amounts.
This will help you build a larger corpus over time.
Maintain an Emergency Fund:

Ensure you have an emergency fund to cover unexpected expenses.
This prevents the need to withdraw from your investments prematurely.
Stay Informed and Educated:

Stay updated on market trends and financial news.
Continuous learning will help you make informed investment decisions.
Conclusion
Your current portfolio is well-diversified but has a significant focus on small cap and sector-specific funds. Consider balancing it with more stable large cap or diversified equity funds. Regularly review and adjust your investments to align with your goals and risk tolerance. Your disciplined investment strategy and thoughtful planning are commendable. With consistent efforts and regular reviews, you are well on your way to achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in