26-Year-Old With 2 Crore Portfolio: Seeking Advice and Guidance

Ans: Hi Amit and thanks for writing to me. The funds you invest in are good funds and you can continue to invest in them.

Ans: Dear Rahul
I have just no idea about your age, future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down. Hence, please note that I am answering your question in absolute isolation to other parameters which should definitely be considered when answering a question of this type.

My recommendation only on the past performance and anticipated future outlook of your funds is as below:-
1. Parag Parikh flexicap - Good fund. Continue.
2. Mirae Asset mid cap fund - Good fund. Continue.
3. Axis small cap fund - As below
4. Canara robeco small cap – Too many small cap funds. Retain this one. Switch out others unless ready to take very high risk in portfolio.
5. Quant small cap – As above
6. PGIM mid cap fund - Good fund. Continue.

However, do note that you are taking a very high risk in your portfolio with 2 midcap and 3 small cap funds. Do consult a financial advisor to rebalance your portfolio.

Ans: You have selected good funds in your portfolio

Ans: Your investment journey reflects a thoughtful approach to building wealth for the long term. Here are some insights and suggestions on your investment portfolio:
Quant Mid Cap Fund:
• Mid-cap funds like Quant Mid Cap Fund have the potential for high growth but may experience higher volatility.
• Ensure you have a long-term investment horizon to ride out market fluctuations and benefit from the growth potential of mid-cap companies.
Parag Parikh Flexi Cap Fund:
• Parag Parikh Flexi Cap Fund follows a flexible investment strategy, allowing exposure to various market segments, including equities and fixed income.
• This fund's diversified approach can provide stability to your portfolio while capturing growth opportunities across different market conditions.
Motilal Oswal Nifty Microcap 250 Index Fund:
• Investing in micro-cap companies through an index fund like Motilal Oswal Nifty Microcap 250 Index Fund offers broad exposure to the micro-cap segment of the market.
• Micro-cap stocks have the potential for significant growth but may be more volatile and less liquid compared to larger-cap stocks.
Quant Small Cap Fund:
• Small-cap funds like Quant Small Cap Fund focus on smaller companies with high growth potential.
• Small-cap investments can be volatile, so ensure you have a sufficiently long investment horizon and risk tolerance to withstand market fluctuations.
Nippon India Multi Cap Fund:
• Multi-cap funds like Nippon India Multi Cap Fund offer diversification across large, mid, and small-cap stocks.
• This fund's flexible allocation allows the fund manager to adapt to changing market conditions and capitalize on opportunities across different market segments.
Suggestions:
1. Diversification: Your portfolio exhibits diversification across different market segments, which is beneficial for managing risk and capturing growth opportunities. Continue to monitor the performance of each fund regularly.
2. Review and Rebalance: Periodically review your portfolio's performance and rebalance if necessary to ensure it remains aligned with your financial goals and risk tolerance.
3. Stay Informed: Stay updated on market trends, economic developments, and fund performance to make informed investment decisions.
4. Emergency Fund and Insurance: Ensure you have an adequate emergency fund equivalent to 3-6 months of living expenses and consider purchasing health insurance and term insurance coverage to protect yourself and your loved ones.
5. Consultation: Consider consulting with a Certified Financial Planner to develop a comprehensive financial plan tailored to your goals, risk tolerance, and investment horizon.
Overall, your investment portfolio shows a well-rounded approach to long-term wealth creation. By staying disciplined and adhering to your investment strategy, you're likely to achieve your financial objectives over time. Keep up the good work!