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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Sep 08, 2021

Mutual Fund Expert... more
Vijay Question by Vijay on Sep 08, 2021Hindi
Money

I am 41 and working in a private organisation. I have started investing in MFs since the last three years.

Please find below my investment portfolio. Request your valuable advice.

Product Name SIP/PM Purchase Value
1. Axis Flexi Cap Fund Regular Growth Rs 2,000 Rs 87,000
2. Aditya Birla Sun Life Equity Fund Regular Growth Rs 2,000 Rs 87,000
3. HDFC Mid-Cap Opportunities Fund Regular Growth Rs 2,000 Rs 87,000
4. Nippon India Small Cap Fund, Regular Growth Rs 2,000 Rs 92,000
5. ICICI Prudential Value Discovery Fund, Regular Growth Rs 2,000 Rs 87,000
6. HDFC Low Duration Fund, Growth (formerly HDFC Cash Management Fund -- Treasury Advantage Plan) Rs 5,000 Rs 20,000
7. HRERP/Retirement Savings Equity Regular GR Rs 5,000 Rs 20,000
8. Kotak Flexi Cap Fund, (G) Regular Rs 1,300 Rs 27,300
9. Aditya Birla Sun Life Pure Value Fund, Regular Growth Rs 1,200 Rs 18,000
10. L&T Midcap Fund, (G) Rs 1,200 Rs 25,200
11. Franklin India Feeder Franklin US Opportunities Fund, (G) Rs 1,300 Rs 7,200
Product Name Purchase Value
1. SBI Flexicap Fund-Dir Gr Rs 20,000
2. SBI Large & Midcap Fund Direct Gr (formerly SBI Magnum Multiplier Fund) Rs 20,000
3. SBI Magnum MidCap Dir Fund-G Rs 20,000
4. SBI Blue Chip Fund -- Direct Plan, Growth Rs 5,000
SBI Magnum Constant Maturity Fund Direct Growth Rs 5,000

Ans: Too many funds; please continue with 1, 3, 4, 5 and 11.

Keep the lumpsums invested.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on Apr 07, 2023

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Hello Sir , My Self Manoj ,I am 40 years old a salaried person , and investing in MFs Since 5.5 years I have below current ongoing investments Aditya Birla FlexiCap Fund -- 7000 p.m.(SIP) HDFC Midcap Opportunities fund ---4000 p.m.(SIP) HDFC Hybrid Equity Fund ----2000 p.m.(SIP) DSP mid cap fund ---2000 p.m.(SIP) DSP Select Focus Fund ---2000 p.m.(SIP) DSP Small Cap Fund 3000 p.m.(SIP) Kotak Equity Opportunities Fund ---2000 p.m.(SIP) SBI Blue Chip Fund -----64000 (lumpsome) SBI Small cap fund ----2000 p.m.(SIP) Nippon India small cap fund ----2000 p.m.(SIP) Invesco Small cap fund ---1000 p.m.(SIP) Tata Small cap fund ----1000 p.m.(SIP) Mahindra Unnati Emerginf Business yojana ----2000 p.m.(SIP) Tata Balanced Advantage Fund -----50000 Mirae Asset Mid cap Fund ---2000 p.m.(SIP) ICICI Flexicap fund -----70000 (lumpsome) DSP Equity and Bond Fund---- 32000 (lumpsome) DSP Dynamic Asset Allocation Fund ----23000 (lumpsome) Sundaram Emerging small cap series1---17000 (lumpsome) Sundaram Services Fund---500 p.m.(SIP) Tata Flexicap Fund ----17400 (lumpsome) Baroda BNP Paribas Flexicap Fund ----50000 (lumpsome) Icici Blue chip Fund ---400 p.m.(SIP) Edelweiss small cap fund ----2000 p.m.(SIP) Axis Flexicap Fund ----19000 (lumpsome) Sundaram Small cap fund ----98000 (lumpsome) ICICI mnc fund---- 6000 (lumpsome) Axis mid cap fund ---500 p.m.(SIP) Canara Robeco small cap fund -----1000 p.m.(SIP) BOI small cap fund ----1000 p.m.(SIP) Aditya birla multicap fund----50000 (lumpsome) Kotak Multicap fund -----25000 (lumpsome) HDFC world indexes fund of fund---10000 (lumpsome) SBI Multicap fund ---1000 p.m.(SIP) PGIM India mid cap oppportunities fund ---1000 p.m.(SIP) Axis small cap fund ----500 p.m.(SIP) Edelweiss focused equity fund ---21000 (lumpsome) UTI flexicap fund ---3000 p.m.(SIP) Quant Large cap fund ---25000 (lumpsome) IDFC mid cap fund ---25000 (lumpsome) White Oak mid cap fund ---20000 (lumpsome) Sundaram Flexicap fund ---700 (lumpsome) Canara Robeco mid cap fund ---2000 p.m.(SIP) Mahindra small cap fund---2000 p.m.(SIP) Total amount of SIP is roughly around 45k per month, Since December 2016 till the date now my investment corpus in Mutual Fund has been now 30.5 lakhs , also i have 30k invested in direct stocks in Indian equity Market. I have 3 LIC policies and 1 term insurance policy of 1 crore cover,I have Bank FDs in nationalised bank for about 27 lakhs , and 3 lakhs in PPF My Goals are 1) 2 crores for my children's marriage and education 2) 2 crores for buying home 3) 4 crores for retirement life (after 10 years) In total i want to generate 8 crores in next 10 years. Kindly suggest if i would be able to achieve the goals in next 10 years,and changes if required any Regards Manoj
Ans: Hello Manoj,

It's great to see that you've been disciplined with your investments and have built a sizable corpus already. To assess if your current investments will help you achieve your goals of 8 crores in the next 10 years, let's take a closer look at your financial situation and goals.

Current Investments:
Mutual Funds: ~30.5 lakhs
Direct stocks: 30k
LIC policies and term insurance: Not considered for investment purposes
Bank FDs: 27 lakhs
PPF: 3 lakhs
Total: ~60.5 lakhs
Monthly SIP investments: ~45k
Now let's analyze your goals:

Children's marriage and education: 2 crores
Buying a home: 2 crores
Retirement life (in 10 years): 4 crores
Total: 8 crores
Assuming an average annual return of 12% on your equity investments, here's a rough projection of your portfolio's growth:

Current investments (60.5 lakhs) in 10 years: ~1.87 crores
Monthly SIPs (45k) in 10 years: ~1.05 crores
Total: ~2.92 crores
Based on this calculation, you would not reach your goal of 8 crores in the next 10 years. However, you can consider making some changes to improve your chances:

Reassess your goals: Consider if your goals are realistic and if there's any flexibility in the amounts or timelines.
Increase your SIP investments: As your salary increases, try to increase your SIP investments to accelerate your portfolio's growth.
Rebalance your portfolio: Regularly review your portfolio to ensure it's aligned with your risk appetite and financial goals. This may involve reducing the number of funds or shifting the allocation between equity and debt.
Monitor fund performance: Keep an eye on the performance of your funds and consider replacing underperforming ones.
Remember that financial planning is an ongoing process, and it's essential to periodically review and adjust your strategy. It's also a good idea to consult with a professional financial advisor to get personalized advice for your specific situation. While it might be challenging to achieve 8 crores within 10 years, these suggestions may help you get closer to your goals.

Best regards,

..Read more

Ramalingam

Ramalingam Kalirajan  |8469 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 28, 2025

Money
pl see my mf portfolio and advise, icici bluechip fund rs 5000/- parag flexi cap rs 5000/-, hdfc flexi cap rs 5000/-,m/o large and mid cap rs 5000/- and nippon india small cap rs 5000/-(all sip monthly )
Ans: You have selected five different mutual fund schemes.

Your SIP contribution is Rs 5000 each in all five funds.

Your total monthly SIP is Rs 25000.

Your portfolio is a mix of large cap, flexi cap, large and mid cap, and small cap funds.

This shows a healthy diversification across market capitalisations.

You have chosen a good combination of growth-oriented equity categories.

Very thoughtful and appreciable planning is visible in your fund selection.

Assessment of Asset Allocation

Your portfolio has strong exposure to large caps through the bluechip fund.

Large cap funds are generally more stable and less volatile.

Flexi cap funds offer diversification across large, mid, and small companies.

Large and mid cap category bridges the gap between stability and higher growth.

Small cap exposure can give potential high returns over the long term.

Small caps are risky but rewarding if you stay invested patiently.

Your asset allocation is balanced towards growth with moderate risk.

Diversification Analysis

You are spreading investments across different market segments.

This is a smart way to balance risk and reward.

You are not overexposed to a single market capitalisation.

Flexi cap funds automatically adjust between different sizes based on opportunities.

It reduces your need to constantly track and rebalance.

Your approach reflects a strong understanding of portfolio construction.

This will help during different market cycles.

Fund Selection Quality

All selected funds belong to reputed fund houses.

Fund houses with a strong track record are always preferable.

The selected schemes are managed by experienced fund managers.

Experienced fund managers can navigate market volatility better.

Your selection of actively managed funds is excellent.

Actively managed funds outperform index funds in India due to inefficiencies.

Index funds often just mirror the market and do not beat it.

Active funds can take advantage of opportunities and protect against downturns.

Hence your preference towards active management is well appreciated.

SIP Strategy Evaluation

You are investing Rs 25000 monthly, which is Rs 3 lakh annually.

SIP method is highly beneficial as it averages cost across market ups and downs.

SIPs encourage disciplined investing without timing the market.

Your regular SIPs will help you build substantial wealth over the years.

Continuation of SIP during market corrections will add great advantage.

You are on the right track with your consistent approach.

Risk Assessment

Small cap funds bring higher risk but also higher potential returns.

Small caps are volatile in the short term but rewarding over 7 to 10 years.

Your portfolio has limited exposure to small caps, which is prudent.

Majority of your investments are in large and flexi cap categories.

This keeps your portfolio volatility under control.

Your risk appetite seems suitable for the portfolio you have built.

Gaps or Missing Elements

One point to highlight is sector diversification within funds.

Most flexi caps and large-mid caps internally manage sector exposure.

You need not add more sector-specific funds to this portfolio.

You have rightly avoided thematic or sectoral funds which are risky.

Global diversification is missing but optional depending on your goals.

For now, it is acceptable to focus on Indian growth story.

Taxation Impact

Equity mutual fund taxation needs careful understanding.

Short-term capital gains within one year are taxed at 20%.

Long-term capital gains above Rs 1.25 lakh are taxed at 12.5%.

If you redeem after one year, you benefit from long-term tax rates.

Keep this taxation aspect in mind while planning redemptions.

SIP units are treated separately for tax based on their holding period.

Sustainability and Future Readiness

Your SIP amount of Rs 25000 monthly is good but review it yearly.

As your income or savings increase, step-up your SIP amount.

Step-up SIPs ensure that your investments match inflation and life goals.

Monitor fund performance once a year but do not churn frequently.

Give your funds enough time to perform over complete market cycles.

Importance of Investing Through Certified Financial Planner

Regular plans through MFDs with CFPs add tremendous value.

Direct plans require you to do all research, monitoring, and rebalancing.

Regular plans offer expert advice, portfolio reviews, and emotional counselling.

Investors often make mistakes like selling during market falls without guidance.

CFPs ensure discipline, goal mapping, risk profiling, and tax efficiency.

The additional cost of regular plans is very minimal compared to the benefits.

You have made the right decision to invest through an expert channel.

Additional Recommendations for Better Portfolio Health

Maintain an emergency fund separately in liquid funds or savings account.

Emergency fund should be at least six months of monthly expenses.

This ensures that SIPs are not interrupted due to cash flow issues.

Continue SIPs even during market downturns without stopping.

Avoid booking profits too early from equity funds.

Rebalancing can be done once a year to maintain original allocation.

Review your financial goals annually and align investments accordingly.

Insure yourself adequately with pure term insurance, if not already done.

Avoid mixing insurance and investments like ULIPs or endowment plans.

Final Insights

Your mutual fund portfolio is well designed with a good mix.

You have selected quality funds across different market capitalisations.

SIP mode is the right approach for steady wealth creation.

Active fund selection gives you better potential than passive index investing.

Your risk profile matches your current portfolio.

Regular monitoring with the help of a Certified Financial Planner is key.

Stay invested with patience and discipline for long-term success.

Avoid unnecessary changes based on short-term market movements.

Increase SIP amount gradually in line with income growth.

Keep separate provisions for emergencies, insurance, and short-term needs.

You are on a solid path towards achieving your financial goals.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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