I am 40 years old and hold below MFs as SIP.

I seek your view whether to hold or redeem in the current market scenario.

Fund	SIP Amount
ABSL Pure Value Fund (G)	Rs 5,000
ABSL Focused Equity Fund (G)	Rs 5,000
HDFC Midcap Opportunities	Rs 2,500
ICICI Pru Bluechip Fund	Rs 2,500
Nippon India Small Cap Fund (G)	Rs 5,000
Canara Robeco Emerging Equity Reg (G)	Rs 5,000
HDFC Top 100	Rs 7,500
ICICI Pru Multi Asset (Dynamic Fund)	Rs 2,500
ICICI Pru Value Discovery	Rs 2,500
IDFC Multi Cap Fund-Growth (Regular Plan)	Rs 2,500
L&T India Value Fund	SIP, Hold
Nippon India Multicap Fund - (G)	SIP, Hold
SBI Focused Equity (G)	Rs 2,500
Nippon India Large Cap Fund Growth	Rs 5,000
UTI Value Opportunities (G)	SIP, Hold
Quantum Long Term Equity Value Fund (D)	SIP, Hold
Kotak Flexicap Growth Plan	Rs 5,000
Mirae Emerging Bluechip	Rs 5,000
Axis Bluechip Fund	Rs 5,000
UTI Flexi Cap	Rs 5,000
Total	Rs 67,500

Ans: In Multi Cap: Uti Equity Fund-growth Plan-growth is a better option

In Large Cap: Axis Bluechip Fund - Growth is a better option

In Aggressive Hybrid: Canara Robeco Equity Hybrid Fund Regular Growth is a better option

Rest are fine.

Ans: 3 rated schemes need to be reconsidered from the ones below.

Equity - Large Cap Fund:

• Mirae Asset Large Cap Fund – Growth
• Axis Bluechip Fund – Growth
• LIC Largecap Fund – Growth

Multicap: Suitable options considering quality and value for money at present levels are:

• UTI Equity Fund – Growth
• Motilal Oswal Multicap 35 – Growth
• Parag Parikh Long Term Equity Fund - Growth

Ans: You may continue the 4-star rated funds; others can be reconsidered

Large Caps: 

• LIC MF Large Cap Fund - Growth
• Mirae Asset Large Cap Fund – Growth

Large and Midcaps: 

• Axis Growth Opportunities Fund – Growth
• Tata Large And Midcap Fund - Growth

Aggressive Hybrid Funds: 

• Mahindra Hybrid Equity Nivesh Yojana – Growth
• Axis Equity Hybrid Fund - Growth 

Ans: Please hold as of now, however, slowly and steadily please reduce the number of funds to 4 – 6 funds.

Ans: Your mutual fund portfolio has a mix of large-cap, large- and mid-cap, multi-cap, mid-cap, and small-cap funds. This diversification strategy is a good approach, especially for a beginner. Your monthly SIP of Rs. 20,000 is distributed effectively across different categories, aligning with long-term investment principles. However, periodic reviews are essential to ensure optimal performance and alignment with your goals.

Here’s a detailed analysis and guidance:

Assessment of Current SIP Investments
Kotak Bluechip Fund (Rs. 5,000):

Large-cap funds provide stability and are less volatile.

Retain this fund if its performance is consistent with its benchmark and category peers.

Tata Large & Mid Cap Fund (Rs. 4,000):

These funds combine stability and growth by investing in large- and mid-cap stocks.

Review its performance and continue if it is competitive within its category.

Invesco India Multi Cap Fund (Rs. 4,000):

Multi-cap funds provide diversification across market caps.

If its returns are below average for its category, consider switching to a better-performing fund.

PGIM India Mid Cap Fund (Rs. 4,000):

Mid-cap funds offer higher growth potential but can be volatile.

Retain this fund if your risk tolerance supports it and its performance is consistent.

Axis Small Cap Fund (Rs. 3,000):

Small-cap funds are high-risk, high-reward investments and perform well over long horizons.

Continue investing if your risk appetite aligns and its returns remain satisfactory.

Steps to Streamline Your Portfolio
Avoid Duplication:

Review overlapping funds in similar categories like large-cap and large- and mid-cap funds.

Consolidate investments in one or two strong performers within a category.

Minimise Small-Cap Exposure:

Limit small-cap investments to 10-15% of your portfolio.

This reduces risk and ensures stability, especially closer to retirement.

Focus on Core Funds:

Increase allocation to large-cap and multi-cap funds for stability and consistent returns.

These funds form the foundation of a robust portfolio.

Track Fund Performance Regularly:

Assess fund performance against benchmarks and peer funds.

Underperforming funds can be replaced with better options.

Diversify Across Investment Styles:

Your portfolio can include flexi-cap or balanced advantage funds.

These funds adjust their asset allocation dynamically based on market conditions.

Addressing Concerns from Friends and Relatives
While advice from peers is valuable, rely on objective criteria for fund selection.

Performance, risk-adjusted returns, and consistency are more critical than temporary trends.

Avoid switching funds hastily; review long-term performance and investment goals first.

Suggestions for Optimisation
Consider Balanced Funds:

Add hybrid or balanced advantage funds for reduced risk and consistent returns.

These funds offer stability during market downturns.

Evaluate Debt Funds:

Debt funds can complement your portfolio by providing stability and liquidity.

These funds are especially useful for goals with shorter horizons.

Tax Efficiency:

LTCG above Rs. 1.25 lakh on equity mutual funds is taxed at 12.5%.

Plan redemptions and switches carefully to minimise tax liability.

Staying Disciplined and Focused
Stick to your long-term investment horizon of 8–10 years.

Avoid chasing high returns or switching funds frequently based on short-term trends.

Monitor your portfolio annually to ensure alignment with goals.

Final Insights
Your portfolio shows good intent and initial planning. With minor adjustments and disciplined investing, it can achieve your financial goals. Reduce overlapping funds, optimise tax efficiency, and focus on stability as you near retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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