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Milind Vadjikar |683 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Sep 23, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more

Asked by Anonymous - Sep 23, 2024Hindi

Sir, I am 46, I am looking for advice, i have some where 20 funds of 60L portfolio. But i am currently looking at overlap of funds and wanted to balance it out may be bring it to 10 to 13 funds. So i am listing some of the funds from long term perspective, which is 5 to 10 years . Please let me know if those funds are good or any change required from overall portfolio. I will be spending 10 to 15% on ICICI Bluechip fund , removing hdfc 50 index + Canara rebeco Bluechip due to overlap of 54%.22.5% on Midcap - HDFC Midcap oppurtunities and Motilal oswal midcap fund and i no more be investing on SBI Maganum midcap fund and removing PGIM Midcap fund as star rating 1 and majorly star rating 4/5. I am also planinng to add Debt fund of 15% ( New investment to balance portfolio, Gsec 2036 bond, let me know if any thing which can give more than 8 %) for next 5 to 8 years. Also atleast i am expecting my portfolio to generate > 15% to 20% return. My stratergy , I see all overlap of stocks is between 9-14% . whichever has more than 30% overlap reducing it. I am looking at horizon of 5 to 10 years. I will continue doing sip of 1 lakh per month may be increasing by 5% every year for next 7 years. I am already having 60L portfolio and planning to increase 1 crore by mid of next year. Reason i am asking now is in future i dont want do major rebalance MF. i would like to sustain the model so that i get return consistantly. Please guide me on my stratergy and plan. If any changes in the portfolio. After sip stop i will start the SWP withdrwal of 4 to 5%. I am looking for generating 4 to 5 crores in next 7 to 10 years. Let me know how i can reach the goal.

Ans: You have a prudent and highly admirable approach to optimize number of funds in your portfolio eliminating excess overlap and below par performance.

ICICI Pru Bluechip, HDFC Mid-Cap opportunities and Motilal Oswal Midcap Funds are good funds in their category so no need to change.

Also your choice of nifty gsec 2036 fund(hdfc/Nippon) to balance your portfolio asset allocation looks apt.

My only slight concern is your return expectation. We should follow the principle of 'hope for the best and be prepared for the worst'.

Considering your lumpsum and sip amounts, reaching target of 4-5 Cr in 7 years even with top-up appears challenging.

However if you stick to top end of your time horizon i.e. 10 years, corpus target looks comfortably achievable even without top-up.
(Modest return of 13% assumed)

As you get closer to your target, transfer your gains to liquid or ultra short duration debt funds to protect it from volatility.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

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Happy Investing!!

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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Question by Binoy - Mar 17, 2020Hindi

I am Binoy working in UAE as a sales executive age 39. From kochin, Kerala. May I kindly get some advice for my mutual funds portfolio? I am doing below mutual funds SIP direct growth. & I stopped some SIPs and hold the funds. Now I am doing 96k SIP. Need to start & continue total 1 lakh SIP for the next 8 to 10 years. Now current total SIP value is around 27 lakhs. This SIP s are for my retirement monthly income 30 to 35k (all are current value) after 10 years, and for my 2 children’s education 35 lakhs lumpsum after 10 & 15 years respectively. I am thinking to stop ICICI pru blue chip & Birla frontline equity and to start Mirae large cap & one more Multi cap fund. I am moderate to little aggressive risk taker. What are the changes required? Should I hold the stopped funds or I need to redeem and deposit it to another funds? if to do so, in which funds I need to invest this lumpsum amounts? Please advise me for the necessary changes required to make a good portfolio to invest for the next 8-10 years. Looking forward to get your reply positively. Fund name Catgory Star Rating Binoy Nair LARGE CAPS & HYBRID AXIS BLUE CHIP EQUITY Equity - Large Cap Funds: 5 ICICI BLUE CHIP EQUITY Equity - Thematic Funds: - Global 4 BIRLA FRONTLINE EQTY Equity - Large Cap Funds: 3 ICICI PRU DEBT& EQUITY Hybrid - Aggressive Hybrid Fund 3 MULTI CAPS KOTAK STANDARD MULTCAP Equity - Multi Cap Funds: 3 AXIS MULTICAP Equity - Multi Cap Funds: 5 AXIS FOCUSED 25 Equity - Focused Funds: 5 Franklin India Focused Equity Equity - Focused Funds: 2 MIDCAP, LARGE & MIDCAP AXIS MIDCAP Equity - Mid Cap Funds: 3 HDFC MIDCAP Equity - Mid Cap Funds: 2 MIRAE ASSET EMERGING BLUECHIP EQUITY Equity - Large & Mid Cap Fund 4 STOPPED SIPs FRANKLIN SMALLER COMPANIES Equity - Small cap Fund 2 BIRLA FOCUSED EQUITY Equity - Focused Funds: 4 HDFC HYBRID EQUITY Hybrid - Aggressive Hybrid Fund 4

Ans: You may continue with the 5 & 4 rated funds; however for others better alternative is available

Equity - Large Cap Funds:

- LIC MF Large Cap Fund-Regular Plan-Growth

- Axis Bluechip Fund - Regular Plan - Growth

- Kotak Bluechip Fund - Growth

- Mirae Asset Large Cap Fund - Growth Plan

Equity - Mid Cap Funds:

- Motilal Oswal Midcap 30 Fund (MOF30)-Regular Plan-Growth Option

- DSP Midcap Fund - Regular Plan - Growth

Equity - Value Funds:Tata Equity P/E Fund Regular Plan -(Growth Option)

Equity - Focused Funds:

- Axis Focused 25 Fund - Regular Plan - Growth Option

- Motilal Oswal Focused 25 Fund (MOF25)- Regular Plan Growth Option

Equity - Large & Mid Cap Fund

- BOI AXA Large & Mid Cap Equity Fund Regular Plan- Growth

- Canara Robeco Emerging Equities - Regular Plan - GROWTH

- Tata Large & Mid Cap Fund- Regular Plan - Growth

Hybrid - Aggressive Hybrid Fund

- Axis Equity Hybrid Fund - Regular Plan Growth

- Dsp Equity And Bond Fund - Growth

- Motilal Oswal Equity Hybrid Fund-regular Plan Growth

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Nikunj Saraf | Answer |Ask -Follow

Mutual Funds Expert - Answered on Nov 14, 2022

Question by Biju - Nov 14, 2022Hindi

I am 43 years old. I am investing in following funds through monthly SIPs. 1. Parag Parikh Flexi Cap - 3,000/- 2. Axis Bluechip Fund - 2,500/- 3. SBI Focused Fund - 1,500/- 4. SBI Small Cap Fund - 1,500/- 5. ICICI Technology Fund - 1,500/- Additionally I have: 1,20,000/- in Mirae Emerging Bluechip, 35,000/- in HDFC Small Cap, 90,000/- in Kotak Flexi Cap 50,000/- in ABSL Banking& Fin Serand thus, till now accumulated around 8,50,000/-. I need 30,00,000/- after 8 years. Please review my portfolio and advice if some changes are required. Also what is your advice on Axis Bluechip Fund which is not performing well.

Ans: Hello Biju Singh. Using your current sip and lump sum investment, you can achieve 30 lakh corpus in 8 years with an expected CAGR of 14%. As far as the amount is concerned, no modification is necessary.

In addition, I suggest that Axis Bluechip, HDFC Small Cap and Parag Parikh schemes be revisited with respect to their better peer schemes. I hope this resolves your concern.

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