I am 39 yrs old and I need advice for below investments for 15 to 20 years of horizon:

DSP Natural Resources & New Energy Fund - Rs 2000
DSP World Gold Fund - Rs 1000
DSP World Mining Fund - Rs 2000
DSP Health care fund - Rs 4000
DSP Small Cap - Rs 3000
DSP Mid Cap - Rs 3000
HDFC Top 100 Fund - Growth - Rs 2000
ABSL Front Line Equity Fund - Growth - Rs 2000
ABSL India GenNext Fund - Growth-Regular Plan - Rs 2000
ABSL Special Opportunities Fund Regular Growth - Rs 2000
Kotak Emerging Equity Fund-Growth (Regular Plan) - Rs 5000
Kotak Flexicap Fund - Growth (Regular Plan) - Rs 2000
Kotak Small Cap Fund - Direct Plan - Rs 1000
L&T Emerging Businesses Fund Growth - Rs 2000
Franklin India Bluechip - Rs. 2000
Invesco India Multicap Fund - Growth - Rs 4000
Axis Long Term Equity Fund - Rs 1000
Axis Blue Chip Fund - Rs 1000
Canara Robeco Blue Chip Equity Fund
ICICI Prudential Manufacture in India Fund Direct Plan Growth - Rs 2000

Ans: No further funds are required, you may invest in the same funds

 

Ans: These are good funds. However, your portfolio has some concentration in the digital sector.

Ans: These are good funds. However, your portfolio has some concentration in the digital sector.

 

Ans: You have built a well-structured portfolio. Your long-term investment vision is truly appreciable. Staying invested for 20 years can create substantial wealth.

However, your portfolio has too many funds. Some categories are overrepresented. A streamlined approach will improve efficiency.

Let us assess diversification, risk, and rebalancing needs.

Portfolio Composition and Risk Analysis
Total Monthly SIP Investment: Rs 39,500

Portfolio Breakdown:

Large Cap – 1
Mid Cap – 3
Small Cap – 1
Flexi Cap – 2
Multi Cap – 1
Value Fund – 1
Sectoral/Thematic – 1
Emerging Businesses – 1
Risk Exposure:

High allocation to mid-cap funds increases volatility.
Small-cap and sectoral funds add further risk.
There is minimal large-cap exposure for stability.
Portfolio needs better balance to handle market downturns.
Fund Overlap Issues:

Multiple mid-cap funds reduce diversification benefits.

Two flexi-cap funds may invest in similar stocks.

One sectoral fund limits flexibility and increases concentration risk.

Key Areas That Need Improvement
Too Many Mid-Cap and Small-Cap Funds
Mid and small caps offer high growth but come with high volatility.

More than 50% of your portfolio is exposed to these categories.

This increases risk, especially during market downturns.

Limited Large-Cap Exposure
Large-cap funds provide stability and steady returns.

Only one large-cap fund in the portfolio is not enough.

Increasing large-cap allocation will improve resilience.

Sectoral Fund Increases Risk
Sectoral and thematic funds focus on one industry.

They are highly risky and depend on sector performance.

A diversified approach is better for long-term wealth creation.

Multiple Overlapping Funds
Three mid-cap funds are unnecessary.

Two flexi-cap funds may have similar stock holdings.

A focused approach will improve overall returns.

Suggested Portfolio Adjustments
? Reduce Mid & Small Cap Exposure

Retain only one or two mid-cap funds.

Retain only one small-cap fund.

Reduce SIP amounts in these categories.

? Increase Large-Cap Allocation

Add another large-cap fund for better stability.

Large-cap exposure should be at least 30% of the portfolio.

? Avoid Sectoral and Thematic Funds

Sector-based investments increase concentration risk.

A well-diversified fund is a better option.

? Consolidate Overlapping Funds

Keep only one or two flexi-cap funds.

Retain only one multi-cap or value fund.

? Introduce a Hybrid or Debt Fund for Stability

Adding a hybrid or debt fund will reduce volatility.

This will ensure capital protection in bad market phases.

Will This Portfolio Help You Reach Your 20-Year Goal?
Your disciplined SIPs will create substantial wealth.

If markets perform well, your goal is achievable.

A proper asset allocation strategy is needed.

Risk management will be crucial for long-term success.

Future Investment Plan
? Review Portfolio Every 2-3 Years

? Increase Large-Cap and Hybrid Allocation Gradually

? Reduce Sectoral and Overlapping Funds

? Ensure Liquidity for Emergency Needs

? Follow a Disciplined Investment Approach

Final Insights
Your long-term investment approach is excellent. With minor changes, your portfolio can be more efficient. A balanced allocation will ensure both growth and stability.

By making these adjustments, you can stay on track for wealth creation. A well-diversified portfolio will protect you from market fluctuations.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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