Good Afternoon Sir I am Anand from Delhi. I am a 37 yrs old Central Govt Salaried Person. I am looking for long term investment and a goal of 9 crores in 17 years. I am contributing 17500 per month in provident fund and 70000 per month in MF through SIP and have planned for 10 percent annual step up.I have started investing from 2023 and have approx 7 lakhs in PF and 6 lakhs MF portfolio. Please review my portfolio and also suggest deletions you it as I feel I have too many funds.I am planning to stop my SIP in Kotak Multi Cap Fund and do it instead in Parag Parikh Flexi Cap and Motillal Midacp fund. Please suggest. My portfolio is as under 1. Edelweiss Aggressive Hybrid Fund- 10000 2. Motilal Midcap -10000 3. Parag Parikh Flexicap-10000 4. Nippon Small Cap-10000 5. SBI Contra-10000 6. Kotak Multi Cap-5000 7. Quant Small Cap-5000 8. ICICI Pru Gold ETF-5000 9. Motilal NASDAQ ETF-5000

Ans: You have started early and are very systematic. That’s the right approach. Your disciplined SIP, annual step-up, and long-term commitment are appreciable. You are focused on your Rs. 9 crore goal over 17 years, which is ambitious, yet absolutely achievable with fine-tuning.

Let’s now review your portfolio comprehensively.

? Portfolio Structure Review

– You are investing Rs. 70,000 monthly across 9 schemes.
– Equity mutual fund exposure is diversified across styles: flexi-cap, multi-cap, mid-cap, small-cap, contra, and hybrid.
– You also have exposure to gold and international (via ETF).
– Your 10% annual step-up plan is a smart way to beat inflation.
– EPF of Rs. 17,500/month gives you stability and conservative growth.

Your foundation is solid. However, some restructuring will bring better focus and improved results.

? SIP Portfolio: Duplication and Overlap

You are currently invested in:

– Edelweiss Aggressive Hybrid – Rs. 10,000
– Motilal Oswal Midcap – Rs. 10,000
– Parag Parikh Flexi Cap – Rs. 10,000
– Nippon India Small Cap – Rs. 10,000
– SBI Contra – Rs. 10,000
– Kotak Multi Cap – Rs. 5,000
– Quant Small Cap – Rs. 5,000
– ICICI Pru Gold ETF – Rs. 5,000
– Motilal NASDAQ ETF – Rs. 5,000

That’s 9 schemes in total. Too many for Rs. 70,000 SIP. This creates portfolio clutter. You lose track of performance and portfolio style exposure.

Fund overlap increases. Monitoring becomes hard. You also dilute fund manager alpha.

? Recommended Fund Count

– Ideal number: 4 to 5 equity funds.
– Keep one large/multi/flexi-cap fund as core holding.
– Add 1 mid-cap and 1 small-cap for growth.
– Consider only 1 thematic/contra/satellite fund.
– Avoid passive gold and NASDAQ ETF for now.

Let’s trim the portfolio and improve quality.

? Suggested Fund Retention and Deletion

Retain these:

– Parag Parikh Flexi Cap (Core allocation)
– Motilal Midcap (Good growth exposure)
– Nippon Small Cap (Strong consistent performer)
– SBI Contra OR Edelweiss Aggressive Hybrid (choose one only for satellite holding)

Delete these:

– Kotak Multi Cap: No need to add this if holding Parag Parikh Flexi already.
– Quant Small Cap: Duplication with Nippon Small Cap.
– ICICI Pru Gold ETF: Gold is a hedge, but you can take tactical exposure later. Not via ETF.
– Motilal NASDAQ ETF: Avoid US passive exposure now. Tech-heavy ETFs are very volatile. No alpha generation.

? Disadvantages of ETFs and Index Funds

– ETFs and Index Funds are passively managed.
– They mirror the market, don’t beat it.
– No fund manager expertise or active selection.
– In volatile markets, they offer no downside protection.
– For long-term goals, actively managed funds with good managers perform better.
– India is still not a mature market. Active funds deliver better returns here.
– Motilal NASDAQ ETF is too concentrated and risky for long-term wealth building.

Avoid all index and ETF-based exposure for now.

? View on Gold ETF Allocation

– Gold should be only 5-10% of portfolio, not more.
– Even then, hold through Sovereign Gold Bonds (SGBs) not ETFs.
– Gold ETF has no fixed income, only price fluctuation.
– SGBs give 2.5% fixed interest + capital appreciation after 8 years.
– For wealth creation, gold should be tactical and limited.

For now, drop gold ETF. Re-visit gold after 2 years if needed.

? Recommendation on Kotak Multicap

– You plan to stop SIP in Kotak Multicap.
– That’s a correct decision.
– You already hold Parag Parikh Flexi Cap.
– Parag Parikh is sufficient for diversified core holding.
– Kotak Multi Cap adds redundancy without meaningful diversification.

Hence, discontinue Kotak Multi Cap SIP.

? Recommended SIP Structure Going Forward

Your SIP structure can be reshaped as below:

– Parag Parikh Flexi Cap – Rs. 25,000/month
– Motilal Midcap – Rs. 15,000/month
– Nippon Small Cap – Rs. 15,000/month
– SBI Contra (or Edelweiss Hybrid) – Rs. 10,000/month
– Keep Rs. 5,000/month in liquid fund for opportunity investment

This reduces fund count to 4 (plus one optional), improves clarity, and aligns with your Rs. 70K SIP.

? Benefits of Regular Funds Through Certified Financial Planner

If you are investing in direct plans, kindly reconsider.

– Direct plans lack advisory or ongoing monitoring.
– You may miss timely rebalancing or underperformance alerts.
– Scheme selection, review, goal tracking becomes difficult.
– Regular plans through a Certified Financial Planner give better structure.
– You also benefit from periodic reviews, tax optimisation, and emotional investing control.
– The extra 0.5-0.8% cost is worth the overall value delivered.

For a Rs. 9 crore goal, structure and review are more important than just low cost.

? Provident Fund as Stability Anchor

– Your EPF contribution is Rs. 17,500/month.
– This adds long-term stability and retirement corpus.
– Continue EPF without any change.
– It offers safe, tax-free returns.
– Works as debt component of your overall portfolio.

Do not consider any voluntary contribution to PPF or VPF now. Focus on equity for growth.

? Taxation Awareness

– LTCG on equity MFs above Rs. 1.25 lakh is now taxed at 12.5%.
– STCG (under 1 year) is taxed at 20%.
– Plan redemptions carefully after 5-7 years to reduce tax impact.
– Debt/gold funds are taxed as per your income slab.
– Keep this in mind while exiting from ETFs.

Keep SIPs in equity for more than 5 years to optimise tax efficiency.

? 360-Degree Suggestions to Reach Rs. 9 Crore Goal

– Continue 10% SIP step-up every year. This is crucial.
– Stay fully invested during market corrections. That’s when wealth is created.
– Avoid frequent switching. Stick to reviewed schemes.
– Add lump sum during market dips from bonus or liquid fund.
– Get annual reviews from Certified Financial Planner.
– Have separate term insurance and health cover always.
– Don’t mix insurance and investment.
– Keep life cover of minimum 15-20 times annual income.
– Review portfolio yearly. Replace underperformers only after 3 years of underperformance.
– Avoid PMS, ULIPs, annuities, NFOs, and thematic funds unless guided.

Stay focused. Simplicity wins.

? Finally

You are doing really well. Starting at 37 with focused SIP and a 17-year horizon gives you high potential.

Your portfolio just needs decluttering. Fund count should reduce. Gold and NASDAQ exposure must go. Move towards a core-satellite structure.

Avoid passive products like ETFs and direct plans. Stick to actively managed funds through an experienced Certified Financial Planner.

You are well on track to reach your Rs. 9 crore goal with discipline, review, and consistency.

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