I am 41 years old male working in a private firm and investing from 2017 in MFs and accumulated around 20 lakhs. My target is to achieve 3 crores in 15 years ( from 2025 ) . My portfolio is given below , Apart from MF investing NPS & PPF and some...

I am 41 years old male working in a private firm and investing from 2017 in MFs and accumulated around 20 lakhs. My target is to achieve 3 crores in 15 years ( from 2025 ) . My portfolio is given below , Apart from MF investing NPS & PPF and some times in Direct equity. Question : 1) Is my fund selection ok , With this current Portfolio along with 10 % Stepup can i achieve my goal. 2) Is SBI blue chip & HSBC small cap funds ok or do I switch to other funds ? 3) Want to invest 5000 more, in which fund should I allocate ? 4) Shall I stop PPF and that money I divert to a mutual fund? 5) Some other funds are also there in my portfolio which I stopped SIP but did not withdraw the amount. What is the best strategy in this case? Mutual Funds S/no Fund name Amount (RS) /month 1 SBI Blue Chip fund 5000 2 Parag Parikh Flexi Cap fund 10000 3 Kotak Multicap Fund 5000 4 Motilal Oswal Mid Cap fund 10000 5 HDFC Mid Cap opportunities 5000 7 HSBC Small Cap fund 5000 8 Nippon India Small Cap fund 5000 Total 45000 S/no NPS Amount (RS) /month 1 Tier -1 7000 2 Tier -2 3000 PPF Amount (RS) / year 1 ICICI PPF 60000

Ans: Hello;

Please find pointwise reply to your queries:

1. You already have allocation to small and mid caps through Flexi cap and multicap funds. Despite that you may have additional allocation to One dedicated mid and small cap fund but not two!

The monthly sip's into second small cap and midcap fund may instead be moved to an aggressive hybrid type mutual fund and multi asset allocation type mutual fund.

You may achieve your target with the proposed step up(10%) planned even considering 10% modest returns from MF investments.

2. Funds are okay however you need to review risk-adjusted performance every year with reference to the benchmark and category average and then decide suitably.

3. You may invest additional 5 K in gold mutual fund.

4. Keep contributing to PPF. It's a social security scheme and goes towards sovereign debt in your overall asset allocation.

5. Review past MF holding in line with your overall asset allocation, portfolio overlap, risk adjusted performance and decide as appropriate.

You may select and avoid funds from suggested categories based on risk adjusted performance criteria.

This being a neutral forum we are prohibited to recommend xyz fund.

Happy Investing;

Ans: You have made a strong beginning. Your discipline and commitment are clearly visible. Starting early and staying consistent are two powerful habits in wealth creation.

Let’s now go point-by-point and assess your portfolio from a 360-degree angle. Every detail will be addressed carefully.

Portfolio Evaluation and Fund Selection
You are investing Rs. 45,000 per month in 7 mutual fund schemes.

These include large cap, flexi cap, multi cap, mid cap, and small cap categories.

Your portfolio has a good spread across market caps. That is a positive thing.

Having exposure to multiple caps ensures balance between risk and return.

However, too many mid and small cap funds can create volatility in the short term.

The small cap allocation is on the higher side. That needs a closer review.

You are investing in 3 different small/mid cap schemes, which may overlap.

Reducing duplication and keeping the portfolio simple is always better.

You can hold one mid cap and one small cap scheme. That’s sufficient.

Consider reviewing your fund overlap using a mutual fund portfolio analyser.

The flexi cap and multi cap funds already offer exposure to all market caps.

So, excessive mid and small cap may increase portfolio risk unnecessarily.

Keep focus on quality funds with strong track record and experienced fund managers.

Goal Feasibility with Step-up SIP
Your goal is Rs. 3 crores in 15 years, starting 2025.

You are investing Rs. 45,000 monthly in mutual funds, along with NPS and PPF.

With a 10% step-up each year, this is a very positive strategy.

Compounding works better when you increase investments with income growth.

If you continue consistently with this plan, the goal is achievable.

Your current corpus of Rs. 20 lakhs also adds strong support to your goal.

It’s important to review your plan every year to stay on track.

Don’t withdraw for any short-term needs from your long-term goal corpus.

The next 5 years are crucial. Stick to discipline even in market volatility.

Also, don’t pause SIPs during market correction. Stay invested through ups and downs.

Assessment of Two Specific Funds
You are investing in a large cap and small cap fund which need review.

The large cap fund is from a reputed AMC. It is a decent pick.

However, large cap funds often underperform in the short term.

They offer stability but don’t expect high returns from them.

Having one large cap fund is enough. Don’t hold multiple ones.

About your small cap fund, yes, it is one of the aggressive funds.

Small caps can give high returns but are very risky and volatile.

You should hold only one small cap scheme from a consistent AMC.

Choose a fund with strong portfolio quality and proven past record.

Avoid overlapping multiple small cap funds which may confuse your asset allocation.

So, continue with only one good mid/small cap fund. Exit others gradually.

Additional Rs. 5,000 Investment: Where to Allocate?
You plan to invest additional Rs. 5,000 every month.

That’s a great step. Increasing investment helps reach goals faster.

You may allocate this to your existing flexi cap or multi cap fund.

These categories give balanced exposure across market capitalisations.

Flexi cap funds offer the fund manager flexibility to move between caps.

Multi cap funds invest a fixed portion in each segment, giving broad coverage.

Avoid adding new schemes. Stick to your existing high-quality funds.

This will help you avoid portfolio clutter and overlapping.

Always check fund consistency, AMC track record and portfolio quality.

Should You Continue PPF or Shift to MF?
You are investing Rs. 60,000 yearly in PPF.

PPF gives tax benefits and guaranteed returns with safety.

However, returns are lower compared to equity mutual funds.

It has a 15-year lock-in. So liquidity is limited.

Use PPF mainly as a part of your debt allocation.

If your overall asset allocation is equity-heavy, PPF brings stability.

If you are fine with equity volatility and want higher returns, diverting to mutual funds is an option.

But don’t stop PPF completely. You can reduce contribution to Rs. 12,000 yearly.

That keeps the account active and gives some guaranteed return safety.

A small portion of guaranteed return helps in goal safety during volatile years.

What to Do With Stopped SIPs?
You have stopped some mutual fund SIPs but not redeemed them.

This is common. Investors stop SIPs but forget the corpus lying idle.

First, review the performance of these funds.

If they are underperforming consistently for over 3 years, consider exiting.

You can redeem and reinvest into your performing current schemes.

If they are performing well, continue holding them as lump sum investment.

Don’t redeem good funds only because SIP is stopped.

Every fund should be evaluated based on long-term performance and role in your goal.

Avoid holding too many funds without clarity. Keep portfolio lean and goal-focused.

NPS Contribution and Strategy
You are contributing Rs. 7,000 to Tier-1 and Rs. 3,000 to Tier-2.

That’s a good disciplined saving approach with tax benefits.

NPS Tier-1 gives tax benefits under Sec 80CCD.

But maturity is taxable and liquidity is restricted.

You can continue this as part of retirement planning.

Do not increase Tier-1 beyond Rs. 10,000 unless needed.

Use mutual funds for wealth creation and goal flexibility.

NPS should be seen as a retirement supplement, not a wealth creation tool.

Other Key Points to Review
Review your mutual fund portfolio every year.

Track your asset allocation. Balance equity and debt properly.

Stick to fewer funds with proven track record and strong management.

Avoid investing in too many schemes just because someone suggested.

Rebalance portfolio every year. Take professional help if needed.

Set up SIPs for long-term. Avoid frequent stopping and restarting.

Don’t take direct equity exposure unless you can track and analyse regularly.

SIP is a habit, not a product. Continue SIPs like paying utility bills.

Final Insights
You have built a strong base for your financial journey.

Stay consistent with SIPs and continue 10% annual step-up.

Trim unnecessary funds. Keep only 5 to 6 high-quality schemes.

Reduce small cap exposure slightly. Focus more on flexi and multi cap funds.

Review old funds you stopped. Exit poor ones. Hold good ones.

PPF can be continued with reduced amount to keep safety element.

Use mutual funds for flexibility and better returns.

Don’t chase high returns. Stay goal focused and disciplined.

Continue regular reviews every year to stay aligned with your Rs. 3 crore goal.

Avoid direct funds. Regular funds through a Certified Financial Planner bring advice and service.

Direct plans lack advisory, portfolio review, rebalancing, and emotional support.

A qualified CFP gives goal clarity, scheme selection and behavioural guidance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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