Please advise me on my following MF investments:

- Axis Nifty 50 direct-G
- Kotak Global Innovation direct- G
- Axis Multicap-G SIP 5K
- Axis LongTerm Equity- G
- Aditya Birla Flexicap direct- G
- Kotak Debt Hybrid direct- G
- Parag Parikh Flexicap direct-G SIP 10K
- Axis Global Eq SIP 5K
- Mirae Asset Emerging Bluechip direct -G SIP 2.5 K
-Mirae Asset Tax saver direct -G SIP 6K
-Mirae Asset Largecap direct- G
- Mirae Asset Healthcare direct- G
- Kotak Flexicap direct G
- HDFC Hybrid Eq - G
- Aditya Birla Eq Advantage – G

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

Keep the lumpsums invested.

Ans: This is fine; we can review it post 1 year

Ans: Better alternatives are available; avoid any Equity - Sectoral Fund – Infrastructure.

Equity – ELSS:

- Canara Robeco Equity Taxsaver Fund - Regular Plan - Growth

- BOI AXA Tax Advantage Fund-Regular Plan- Growth

- Aditya Birla Sun Life Tax Relief '96 - Growth Option

Equity - Multi Cap Funds:

- Motilal Oswal Multicap 35 Fund (MOF35)-Regular Plan-Growth Option

- JM Multicap Fund - Growth option

- UTI - Equity Fund-Growth Option

Hybrid - Dynamic Asset Allocation

- Motilal Oswal Dynamic Fund - Regular Growth

- Axis Dynamic Equity Fund Regular Plan Growth 

Ans: You may continue with 4 and 5 rated funds; better options are available in value and midcap categories.

Equity Value Funds: (4-Star rated):

• Tata Equity PE fund
• UTI value opportunity funds

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

• Motilal Oswal Midcap 30
• DSP Midcap
• Kotak Emerging Equity Fund

Ans: Assessment of Mutual Fund Investments and Recommendations:

Your decision to invest in mutual funds reflects a proactive approach towards building long-term wealth. Let's evaluate your current investment strategy and provide recommendations to ensure you are on the right track.

Current Investment Analysis:

Parag Parikh Flexi Cap: Investing Rs. 30,000 per month in a flexi cap fund like Parag Parikh reflects a balanced approach, allowing exposure to companies across market capitalizations. Flexi cap funds offer flexibility to capitalize on opportunities across market segments, potentially enhancing returns.

Axis Small Cap: Allocating Rs. 35,000 per month to a small-cap fund like Axis Small Cap indicates a willingness to take on higher risk for potentially higher returns. Small-cap funds have the potential for significant growth but also carry higher volatility due to exposure to smaller companies.

Kotak Emerging Equity: Investing Rs. 35,000 monthly in an emerging equity fund like Kotak Emerging Equity aligns with a strategy focused on capitalizing on growth opportunities in emerging sectors and companies. These funds invest in stocks of companies with potential for rapid growth, albeit with higher risk.

Recommendations:

Diversification: While your current investment strategy displays a focused approach, it's essential to ensure adequate diversification across fund categories. Consider diversifying into other categories such as large-cap, multi-cap, or thematic funds to spread risk and capture opportunities across different market segments.

Risk Management: Given the higher risk associated with small-cap and emerging equity funds, it's crucial to assess your risk tolerance and ensure it aligns with your investment horizon and financial goals. Consider rebalancing your portfolio periodically to manage risk exposure effectively.

Regular Review: Regularly review your portfolio's performance and make adjustments as needed to stay aligned with your long-term financial objectives. Monitor the performance of individual funds and assess their consistency in delivering returns relative to their benchmarks and peers.

Professional Guidance: Consider consulting with a Certified Financial Planner (CFP) to evaluate your investment strategy comprehensively. A CFP can provide personalized advice tailored to your financial goals, risk tolerance, and investment horizon, ensuring your portfolio remains on track to achieve your objectives.

Periodic Rebalancing: Periodically rebalance your portfolio to maintain the desired asset allocation and risk profile. Rebalancing involves selling overweight assets and reallocating funds to underweighted ones, ensuring your portfolio remains aligned with your investment objectives.

By implementing these recommendations, you can enhance the effectiveness of your investment strategy and increase the likelihood of achieving your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in