Hi sir,I am 40 years old, my goal is retirement with 5 cr. I am investing 25k through SIP in the following Funds. 5k- icici pru bharat 23fof 5k-motilal oswal mid, 5K-Quant large and mid, 5k-Nippon Small cap 5k-Quant small cap, All Direct Funds. Investment Horizon - 20 to 22 Years. Goal -please check my portfolio,Wealth Creation, Risk Appetite- High. Please advise if I should pause or continue with these mutual funds.

Ans: Portfolio Review and Recommendations for Wealth Creation
Overview of Current Investments
Your portfolio consists of a monthly SIP of ?25,000 distributed as follows:

?5,000 in ICICI Prudential Bharat 23 FoF
?5,000 in Motilal Oswal Midcap Fund
?5,000 in Quant Large and Mid Cap Fund
?5,000 in Nippon Small Cap Fund
?5,000 in Quant Small Cap Fund
You have a high-risk appetite and a 20 to 22-year investment horizon with a goal of creating a retirement corpus of ?5 crores.

Compliments on Your Investment Strategy
Your disciplined approach to investing through SIPs is commendable. Consistency in SIPs, especially in equity funds, aligns well with your high-risk appetite and long-term horizon. This strategy helps in rupee cost averaging and compounding returns over time.

Analytical Review of Your Portfolio
ICICI Prudential Bharat 23 FoF:

This fund focuses on sectors highlighted in the Bharat 23 theme.
While thematic funds can offer high returns, they come with concentrated risks.
Motilal Oswal Midcap Fund:

Midcap funds can provide significant growth over the long term.
They are suitable for investors with a high-risk appetite due to higher volatility.
Quant Large and Mid Cap Fund:

This fund offers a balanced exposure to large-cap and mid-cap stocks.
It provides a good blend of stability and growth.
Nippon Small Cap Fund:

Small cap funds can generate high returns but come with higher risks.
They are more volatile compared to large and mid-cap funds.
Quant Small Cap Fund:

Similar to the Nippon Small Cap Fund, this fund focuses on high-growth small-cap companies.
Diversifying within the small cap segment may not be necessary.
Recommendations for Wealth Creation
Diversification:

Your portfolio is heavily tilted towards small and mid-cap funds.
Adding a large-cap fund or a diversified equity fund can provide stability.
Rebalance Sectoral/Thematic Exposure:

The ICICI Prudential Bharat 23 FoF is thematic.
Consider reducing exposure if the theme does not align with your overall strategy.
Consolidate Small Cap Investments:

Holding two small cap funds may not be necessary.
You can consolidate into one fund to avoid overlap and simplify management.
Consider Actively Managed Funds:

Direct funds have lower expense ratios but require more monitoring.
Actively managed funds can offer professional management and potential for higher returns.
Steps to Achieve ?5 Crores
Regular Review and Adjustments:

Periodically review your portfolio and make adjustments based on performance and market conditions.
Increase SIP Amount:

Gradually increase your SIP amount as your income grows.
This can significantly boost your corpus over the long term.
Emergency Fund and Insurance:

Ensure you have an emergency fund and adequate health and life insurance.
This protects your investments and provides peace of mind.
Stay Invested:

Market volatility is inevitable.
Staying invested and not reacting to short-term market fluctuations is crucial.
Conclusion
Your current portfolio is on the right track for wealth creation given your high-risk appetite and long-term horizon. However, some adjustments can enhance stability and growth potential. Diversifying across different market caps and sectors will help in balancing risk and returns. Keep increasing your SIPs and reviewing your portfolio regularly to stay aligned with your goals.

Your disciplined investment approach and thoughtful planning are commendable. With consistent efforts and regular reviews, you are well on your way to achieving your retirement goal of ?5 crores.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in