I am 45 years old and I have invested in the following MFs.

• parag Parikh flexi cap fund 10000
• quant small cap fund 10000
• Axis bluechip fund 10000
• Mirae Asset Large cap fund 5000
• canara robeco bluechip equity fund 5000
• ICICI prudential technology fund 5000

Sir I want to know the following: 

• that which are the duplicate funds in my portfolio i.e. under investment –
• Omkeshwar Singh Bluechip category has duplicity
• that among my duplicate funds which I should exit and which I must keep
• Omkeshwar Singh Can be consolidate in Mirae large cap
• that in which fund should i increase my fund
• that in which additional fund should i invest

Ans: In bluechips, please continue with ICICI Pru Bluechip fund growth

Most of the funds are decent!

Ans: Based on your current portfolio, you have exposure to small-cap, flexi-cap, multi-cap, and balanced advantage funds, which provides diversification across different market segments and investment styles. However, it's essential to periodically review your portfolio to ensure it remains aligned with your investment goals, risk tolerance, and market conditions.

Consider assessing the performance and outlook of each fund, as well as evaluating your overall asset allocation strategy. Depending on your analysis and any changes in your financial situation or objectives, you may choose to make additions or deletions to your portfolio to enhance diversification or address specific investment needs.

Consulting with a financial advisor can provide valuable insights and help tailor your investment strategy to meet your objectives effectively.

Ans: Dear investor, I need alot more information to evaluate your portfolio. I suggest you can reach me at www.beyondlearningfinance.com to get detailed evaluation of your portfolio

Ans: Your current portfolio of Rs. 50,000 per month has a variety of funds across different categories. Diversification is good, but it's crucial to avoid overlapping and redundant funds. Let's break down your portfolio for better clarity.

Assessing Fund Overlap
Having too many funds in the same category can dilute the benefits of diversification. Here’s a closer look:

Large Cap Funds: You are currently investing in three large-cap funds. It's better to streamline this category. Choose one or two strong performers instead of spreading your investments too thin.

Mid Cap Funds: You have two mid-cap funds. This is reasonable, but ensure they have distinct strategies. If both are similar, consider reducing one.

Small Cap Funds: A small allocation to small-cap funds is good. You have one, which fits well with your overall strategy.

Flexi Cap Funds: You have three funds in this category. Flexi-cap funds are versatile, but having three might be excessive. It’s better to focus on one or two.

Sectoral/Thematic Funds: You have investments in a technology fund and an ESG fund. These are niche investments and should not dominate your portfolio. Keep these as smaller allocations.

Hybrid Funds: A single hybrid fund is a good way to add stability. This is well placed in your portfolio.

Index Funds: Index funds are mentioned here, but actively managed funds tend to offer better potential returns, especially in an Indian context. Consider this when reviewing your index fund allocation.

Suggestions for Portfolio Optimization
Streamlining the Portfolio
Large Cap Funds: Reduce the count to one or two. Stick with the one that has a proven track record over multiple market cycles.

Mid Cap Funds: Keep one strong performer. If the funds are similar, reduce the other.

Flexi Cap Funds: Opt for one or two that have a distinct investment strategy and stick to them. Avoid duplicating your flexi-cap investments.

Reallocation of Investment Amounts
Increase in Core Funds: Focus more on your core funds, like one large-cap and one flexi-cap. These should take up a larger portion of your Rs. 50,000 monthly investment.

Maintain Small Allocations: Keep smaller investments in niche funds like your sectoral/thematic funds. These should not exceed 10-15% of your total investment.

Consider Debt Funds: Though not mentioned, adding a debt fund or increasing allocation to your hybrid fund could provide stability.

Importance of Active Management
If you are investing in direct funds, you might miss out on the strategic guidance offered by Certified Financial Planners (CFPs). Regular funds through a CFP can provide active management, which could lead to better returns. This is especially important in a dynamic market.

Final Insights
Your current portfolio is diverse but may be overly complex. Simplifying by reducing the number of funds in each category can lead to better performance and easier management. Reallocate your investments to focus more on high-quality core funds while keeping niche funds as a small part of your portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in