Good afternoon sir /madam I am 38 years old and since four years I am investing 6000rs per month via sip below four mutual funds and just I want to view my portfolio and could you please suggest me I can change any funds otherwise should I hold and l am looking for long term horizon and I am ready to take high risk also.

1. Absl flexi cap fund 1000

2. Mirae asset emerging equity fund 1500

3. Hdfc mid cap opportunitys fund 1500

4. SBI small cap fund 2000

Ans:

Ans: Your mutual fund portfolio appears to be diversified across different fund categories, which is a good start. Here are some considerations and potential modifications to optimize your portfolio for your long-term goal of reaching 1 crore in 20 years:

Review Fund Performance:
Monitor the performance of each fund in your portfolio regularly to ensure they are meeting your expectations and aligning with your investment goals.
Consider replacing underperforming funds with better alternatives if necessary.
Asset Allocation:
Assess the asset allocation of your portfolio to ensure it is aligned with your risk tolerance and investment horizon.
Depending on your risk appetite, you may consider adjusting the allocation between large-cap, mid-cap, and small-cap funds to achieve an optimal balance of growth potential and risk mitigation.
Goal-based Investing:
Evaluate whether the selected funds are likely to generate the required returns to reach your goal of 1 crore in 20 years.
Consider using a goal-based investment approach and adjusting your investment strategy accordingly to ensure you stay on track to achieve your financial objectives.
Consider Adding Equity Diversification:
While your current portfolio includes funds across various market segments, you may consider adding further diversification by including funds from different fund houses or exploring thematic or sectoral funds.
Be cautious not to over-diversify, as this may dilute the potential returns of your portfolio.
Regular Review and Rebalancing:
Regularly review your portfolio's performance and make adjustments as needed to maintain alignment with your goals and risk tolerance.
Rebalancing your portfolio periodically can help ensure that your asset allocation remains consistent with your investment strategy.
Professional Advice:
Consider seeking guidance from a financial advisor or Certified Financial Planner who can provide personalized advice based on your individual financial situation, goals, and risk profile.
A professional can help you fine-tune your investment strategy and make informed decisions to optimize your portfolio for long-term growth.
By carefully reviewing and potentially modifying your mutual fund portfolio based on the considerations mentioned above, you can work towards achieving your goal of accumulating 1 crore over the next 20 years. Stay disciplined in your approach and continue investing regularly to maximize the growth potential of your investments.

Ans: Let's dive into a detailed analysis of your existing mutual fund SIP portfolio to identify potential areas for optimization and ensure alignment with your financial goals.

Assessing Your Current Portfolio
Your current portfolio consists of a diversified mix of mutual funds across various categories, including mid-cap, large-cap, flexi-cap, infrastructure, multi-asset, and small-cap funds. This demonstrates a well-rounded approach to investment diversification.

Evaluating Fund Performance and Risk Profile
Performance: Evaluate the historical performance of each fund relative to its benchmark index and peer group. Look for consistent performers with a track record of delivering above-average returns over the long term.

Risk Profile: Assess the risk profile of each fund based on factors such as volatility, standard deviation, and downside capture ratio. Ensure that the risk level aligns with your risk tolerance and investment horizon.

Identifying Redundancies and Overlaps
Review your portfolio for any redundancies or overlaps in investment objectives and underlying holdings. Eliminate duplicate exposures to similar asset classes or sectors to streamline your portfolio and reduce unnecessary risk.

Addressing Fund Selection and Allocation
Mid-Cap and Small-Cap Funds: Mid-cap and small-cap funds offer the potential for high growth but come with increased volatility. Evaluate your exposure to these segments and consider rebalancing if necessary to manage risk.

Large-Cap and Flexi-Cap Funds: Large-cap and flexi-cap funds provide stability and diversification. Ensure adequate allocation to these segments to mitigate volatility and capitalize on market opportunities.

Sectoral and Theme Funds: Review your exposure to sectoral and theme funds, such as infrastructure and multi-asset funds. While these funds can offer niche opportunities, they also carry concentrated risks. Consider reducing exposure or diversifying across sectors for better risk management.

Streamlining and Rebalancing Your Portfolio
Based on the assessment above, consider streamlining your portfolio by consolidating redundant funds and rebalancing allocations to align with your risk-return objectives. Focus on retaining high-quality funds with strong track records and reallocating resources to optimize diversification and minimize risk.

Monitoring and Reviewing Your Portfolio Regularly
Lastly, commit to monitoring your portfolio regularly and reviewing your investment strategy periodically to ensure continued alignment with your financial goals and evolving market conditions. Stay informed about fund performance, economic trends, and regulatory changes to make informed decisions.

Conclusion
In conclusion, while your current mutual fund portfolio demonstrates diversification and a proactive approach to investment, there may be opportunities to optimize allocations, address redundancies, and enhance risk-adjusted returns. By conducting a comprehensive review and making strategic adjustments, you can position your portfolio for long-term success and achieve your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Your investment journey since 2021 demonstrates discipline and foresight. Investing Rs. 5 lakh monthly SIP across these funds aligns with your long-term aggressive investment approach. Let us evaluate your portfolio to identify strengths and areas of improvement.

Positives of Your Portfolio
Diversified Fund Selection: Your portfolio spans flexi-cap, large & mid-cap, multicap, midcap, and small-cap categories. This ensures exposure across market segments.

Aggressive Growth Potential: Allocating to midcap and small-cap funds complements your aggressive long-term horizon. These funds are designed to outperform during economic growth cycles.

Well-Balanced Allocation: Equal allocation across five funds provides stability without overexposing to any single segment.

Long-Term Vision: A 15+ years horizon leverages the power of compounding and mitigates short-term volatility.

Suggested Adjustments
While your portfolio is strong, a few refinements could enhance performance and resilience.

1. Overlap Analysis
Several funds in your portfolio might hold overlapping stocks, particularly in large and midcap segments. This reduces diversification benefits.

Consider streamlining fund categories by replacing one with lower overlap or higher performance consistency.

2. Review Fund Consistency
Check the long-term performance consistency of each fund. Retain funds that outperform their benchmark and peers across 5- and 7-year horizons.

Remove underperforming funds if they show persistent inconsistency over multiple market cycles.

3. Reassess Fund Categories
Evaluate the need for multiple funds in similar categories like flexi-cap and multicap. Consolidating these might optimise your portfolio.

Retain a balance between aggressive (midcap, small-cap) and stable (large-cap) investments.

Important Insights
Benefits of Regular Funds
Expert Guidance: Regular funds through a Certified Financial Planner (CFP) ensure you receive professional advice and ongoing monitoring.

Strategic Rebalancing: A CFP helps with timely rebalancing and aligning with financial goals.

Convenience: Regular funds allow access to consolidated reports, tax optimisation, and paperwork assistance.

Avoiding Direct Funds
Time-Intensive: Managing direct funds requires deep research, ongoing tracking, and frequent adjustments.

Risk of Bias: Without expert guidance, you may choose funds based on recent trends rather than solid fundamentals.

Missed Opportunities: Professional advisors often suggest funds with higher potential, which may not be immediately apparent.

Taxation Updates
Equity Mutual Funds: Gains above Rs. 1.25 lakh in a year are taxed at 12.5%. Short-term gains are taxed at 20%.

Debt Funds: Gains, both long- and short-term, are taxed as per your income tax slab.

Strategise your withdrawals to minimise tax impact. Align redemptions with tax-free limits for optimal returns.

Holistic Recommendations
1. Portfolio Monitoring
Periodically review performance, ideally once a year, to ensure alignment with your goals.

Analyse fund performance in varying market conditions, such as bull and bear phases.

2. Risk Management
Ensure an emergency fund of at least 6 months' expenses outside your mutual fund portfolio.

Adequate health and life insurance will protect your financial plan from unforeseen events.

3. Asset Allocation
Balance your portfolio by periodically adjusting weights based on market conditions and life stage.

Overexposure to small and midcaps should be reassessed if nearing major life goals.

4. Goal-Based Investing
Map your SIPs to specific financial goals like retirement, children's education, or wealth creation.

Use goal timelines to decide the proportion of equity and debt in your portfolio closer to goal maturity.

Final Insights
Your portfolio reflects a strong commitment to wealth creation. By implementing the suggested refinements, you can further optimise returns and risk balance. Stay disciplined, monitor periodically, and consult a Certified Financial Planner for continued success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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