I am 40 year old currently i am invest SIP 13 K in different Mutual fund 1)kotak Emerging Equity fund 2) Parag parikh flexi cap fund 3) Axis Blue chip Fund 3) ICICI Prudential Innovation Fund 4) ICICI Prudential Manufacturing Fund 5)Bajaj Finserv Flexi cap fund 6) Mahindra Manulife small cap fund 7) Motilal oswal small cap fund, this all funds are good ? My plan is More 7000 invest in SIP please suggest other mutual funds for batter return in future?

Ans: Your current SIP of Rs. 13,000 is spread across seven different funds. Let's assess your existing portfolio and provide suggestions for optimizing your investments.

Assessment of Existing Mutual Fund Portfolio

Assessment of Existing Mutual Fund Portfolio
1. Kotak Emerging Equity Fund

This is a mid-cap fund.

It has delivered strong long-term returns.

Suitable for investors with a high-risk appetite.

2. Parag Parikh Flexi Cap Fund

A flexi-cap fund with a diversified portfolio.

It has consistently outperformed its benchmark.

Ideal for long-term wealth creation.

3. Axis Bluechip Fund

A large-cap fund focusing on blue-chip companies.

Provides stability during market volatility.

Suitable for conservative investors.

4. ICICI Prudential Innovation Fund

A thematic fund focusing on innovative companies.

Higher risk due to sector concentration.

Recommended for investors with a strong risk appetite.

5. ICICI Prudential Manufacturing Fund

Focuses on the manufacturing sector.

Subject to cyclical market trends.

Suitable for investors who can tolerate sector-specific risks.

6. Bajaj Finserv Flexi Cap Fund

A relatively new flexi-cap fund.

Limited performance history.

Investors should monitor its performance closely.

7. Mahindra Manulife Small Cap Fund

A small-cap fund with potential for high returns.

Higher volatility compared to large-cap funds.

Suitable for long-term investors.

8. Motilal Oswal Small Cap Fund

Another small-cap fund in your portfolio.

Having multiple small-cap funds increases risk.

Consider consolidating to manage risk better.

Suggestions for Additional SIP of Rs. 7,000
1. Avoid Overlapping Fund Categories

You already hold two small-cap funds.

Avoid adding more in the same category.

Instead, choose different types for better balance.

2. Add a Balanced Advantage Fund

Balanced advantage funds adjust equity and debt mix.

They are useful in volatile markets.

Good for long-term wealth creation.

3. Add a Consistent Mid-Cap Fund

One more mid-cap fund can balance growth and risk.

Choose a fund with strong past records.

Ensure low overlap with existing holdings.

4. Do Not Add Another Thematic Fund

You already hold two sector-specific funds.

Avoid adding more thematic funds now.

These funds are more risky and less predictable.

5. Prefer Actively Managed Regular Funds

Regular plans come with professional guidance.

A Certified Financial Planner and MFD monitors fund performance.

This adds discipline and structure.

6. Avoid Index Funds

Index funds blindly follow the index.

They do not protect from downsides.

Actively managed funds have better flexibility and research backing.

7. Avoid Direct Mutual Funds

Direct funds lack personalised review and guidance.

MFDs with CFP credentials help create goal-based portfolios.

They offer risk management and fund selection support.

8. Use STP or Lumpsum for Year-End Bonus

If you get bonus or surplus, don’t hold it in savings.

Invest lumpsum in low-risk debt fund.

Set up STP to shift to equity gradually.

Other Key Suggestions
1. Set Clear Investment Goals

Define goals like child education, retirement, or home renovation.

Each SIP should align with one goal.

Time horizon helps in selecting right category.

2. Track and Review Funds Every Year

Don’t stop SIPs due to short-term loss.

Review all funds once a year.

Remove consistent underperformers only after 3 years.

3. Manage Tax Efficiently

Equity fund LTCG above Rs. 1.25 lakh taxed at 12.5%.

STCG taxed at 20%.

Plan withdrawals smartly for tax efficiency.

4. Avoid Too Many Funds

Seven to eight funds are enough.

Too many funds create overlap and confusion.

Focus on quality, not quantity.

5. Do Not Chase Recent High Performers

Choose funds with long-term consistency.

Past year performance can mislead.

Select based on long-term stability and risk-adjusted returns.

6. Avoid Investment-Linked Insurance

If holding LIC or ULIP, assess its performance.

Most traditional plans give poor returns.

If returns are low, surrender and shift to mutual funds.

7. Emergency Fund Is Must

Keep 6 months of expenses in liquid form.

Helps avoid breaking SIPs during emergencies.

Keep it in liquid or ultra-short-term debt funds.

Finally
Your SIP journey is headed in the right direction.

You have chosen diversified categories across funds.

But small adjustments can help you improve outcomes.

Limit exposure to thematic and small-cap schemes.

Invest new SIP in balanced or mid-cap category.

Regular monitoring and goal tracking are important.

Use MFD with CFP credential for guidance and review.

Rebalancing once in a year will control risk.

Always link your SIPs to financial goals.

Stay focused on long-term and avoid panic in short term.

Avoid crowding your portfolio with too many similar funds.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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