I HAVE A BELOW INVESTMENT PRESENTLY STARTED IN 3 MONTHS WANT TO KNOW IF I AM ON WRIGHT TRACK AS I WANT TO BUILD A GOOD AMOUNT OF FUND IN 10 YEARS ICICI PRU BLU CHIP FUND RS 5000 /MONTH SBI INTERNATIONAL ACESS US EQT RS 5000/MONTH MOTILAL OSWAL MIDCAP FUND RS 5000/MONTH QUANT SMALL CAP FUND RS 3000/MONTH EDELWEISS US TECHNO EQUITY FUND 10000/MONTH TATA SMALL CAP FUND RS 10000/MONTH INVESCO INDIA GLOBAL EQUITY INCOME FUND: 3000/MONTH MOTILAL NIFTY MIDCA 150 INDEX FUND RS 5000/MONTH HDFC FLEXI CAP FUND RS 5000/MONTH QUANT FLEXI CAP FUND 2000/MONHT NIPON INDIA LARGE CAP FUND 5000/MONTH

Ans: You started investing just three months ago.

Consistent investing shows strong habit.

That is a commendable beginning.

Portfolio Assessment and Alignment with Goals
You invest across large, mid, small, flexi, and international funds.

That gives wide diversification, which is good.

But many mutual funds overlap in equities.

Overlap reduces diversification benefit and increases risks.

We need to ensure each contribution has a purpose.

Defining Your Investment Goal for 10 Years
You plan to build a ‘good amount’ in ten years.

We need clarity on amount and purpose.

Is it for retirement, education, property down payment or a fund pool?

Define realistic corpus range like Rs 1–2 crore or Rs 50 lakh.

Linking each fund to specific objectives improves tracking.

Role of Active Equity Mutual Funds
You are using actively managed funds.

These funds select promising companies and sectors.

They monitor performance and rebalance portfolios.

Actively managed funds can outperform passively managed ones.

Passive index funds simply track market indices.

They hold all index stocks, even weak ones.

No strategy to replace poor performers quickly.

Active funds allow portfolio adjustments amid risk events.

This extra management adds chance of higher returns.

Index investing offers simplicity but lacks human oversight.

For critical goals, active funds are better.

Avoiding Direct Plans for Better Discipline
You didn’t say ‘direct’ fund, so you may use regular plans.

That is good. CFP-led support brings structure.

Regular funds include advice, review, and behavioral discipline.

Investors using direct funds often leave decisions to emotion.

They may exit during market dips.

Losing discipline can hurt returns significantly.

Regular plans help to rebalance and stay committed.

Deep Dive into Your Funds
1. Large?Cap Focus
Fund A: Large?caps provide stability and core growth.

Fund B: Nippon large?cap also in same equity space.

Two separate large?cap funds causes overlap.

Better to pick one strong manager with good track record.

Keep only one large?cap active fund to reduce duplication.

2. Mid?Cap and Small?Cap Funds
You hold two mid?cap and two small?cap equity funds.

Mid?caps offer growth when economy picks up.

Small?caps bring high returns but also high volatility.

Too many may cause excessive volatility in bear cycles.

Keep one solid quality manager for each category.

Consolidate others or allocate smaller amounts.

3. Flexi?Cap Funds
Two flexi?cap funds add flexibility to shift between caps.

Flexi?cap managers can adapt to market trends.

Again, only one strong flexi?cap fund is enough.

Too many overlap in holdings across market caps.

4. International Equity Funds
SBI International US Equity and Edelweiss US Tech funds are both US exposure.

Global equity helps diversify away from Indian market risk.

But both target US equities; a more diversified global fund could be better.

Two US?oriented funds add more exposure to same country.

Option: keep one US fund and add a global multi?country actively managed fund.

5. Equity Income Fund
This invests in dividend or income generating equities.

Helps provide stability in volatile markets.

Good for medium?term goals and reduces risk.

Maintain this allocation, but keep it modest.

Portfolio Overlap and Risk Management
Many funds hold blue?chip names.

Significant overlaps lead to concentration risk.

Overlap hurts when blue?chips fall.

We need diversification with unique managers.

Consolidate similar funds across each category.

Suggested Simplified Structure:

Large?cap: pick one strong manager for large firms.

Mid?cap: one reliable fund.

Small?cap: one high conviction fund.

Flexi?cap: one flexible fund.

International/global: one global equity fund.

Equity income: maintain as stability anchor.

Asset Allocation Strategy
Use split: 60% equity, 20% international/global, 20% debt (in later years).

Equity portion can be:

25% large?cap

15% mid?cap

10% small?cap

10% flexi?cap

Optional: 5% equity income

International/global: invest 20% to offset India-centric risk.

Debt is for capital protection as you near goal end.

Implementation for 10?Year Horizon
Identify time buckets

Years 1–5: growth stage, higher equity allocation.

Years 6–10: move some equity into debt shifts.

Rebalance annually

Reallocate if any category deviates +-5%.

Move excess from outperformers to laggards.

Use SIPs rather than lumpsum

You’ve chosen monthly SIPs correctly.

Continue to avoid lump sum due to high volatility.

Yearly SIP enhancement

Increase SIP by 10% every year.

This steps up contributions with income.

Taxation Insight for 10?Year Plan
If you sell equity funds before 1 year, STCG taxed at 20%.

After one year, LTCG above Rs 1.25 lakh taxed at 12.5%.

For debt funds, both STCG and LTCG taxed at slab rate.

Long?term holding favours lower tax.

Plan exits after 10 years to avoid short?term tax.

Tax?efficient planning critical for final corpus.

Behaviour & Monitoring Discipline
Check fund performance annually.

Do not monitor daily or react to market noise.

Avoid frequency buying/selling.

Maintain discipline during corrections.

Update your CFP at least once yearly.

Use their review to adjust allocations.

Emergency Buffer and Risk Cover
Maintain 6 months’ living expenses in liquid fund.

This buffer keeps you invested during emergencies.

Life: term insurance to cover liabilities and family needs.

Health: adequate family medical cover.

Avoid investment products masquerading as life insurance.

Surrender Check: LIC or ULIP Policies?
You didn’t mention LIC or ULIP holdings.

If you have any, assess returns vs premium paid.

If returns are poor, surrender and redirect to equity SIPs.

Annual Review Process with CFP
Review entire portfolio each year.

Ask about performance, allocation, and future strategy.

Discuss increase in SIP and emergency buffer.

Rebalance into debt during year 6–8 period.

Why This Simplified Structure Works
Fewer funds mean easier tracking.

Reduces overlap and improves risk?adjusted returns.

Equity income adds stability buffer in volatile markets.

Global exposure offsets India?centric swings.

Flexi?cap adds tactical advantage.

What You Should Do Now
List current fund folios.

Identify duplicates in categories.

Keep one fund each for large, mid, small, flexi, international, equity income.

Redeploy remaining fund allotments into chosen ones.

Gradually stop excess SIPs or redirect future investments.

How to Redeploy Excess Investment
Stop SIPs in duplicate category funds.

Increase allocations in chosen single funds.

Ensure total monthly invested amount remains same.

Gradually channel top?ups into core funds.

Timeline for This Rebalancing
Month 1: Decide on final fund selection.

Month 2: Stop SIP in redundant funds.

Month 3–6: Redirect investments and watch flow.

Month 12: First formal portfolio review.

Long?Term Wealth Creation Outlook
Stay invested in chosen equity funds for full 10 years.

Expect portfolio to deliver significantly higher returns than fixed income.

Maintain discipline through volatility phases.

Your corpus can exceed goal if stays invested.

Continual monitoring with CFP helps catch issues early.

Final Insights
Your current habit is great—keep it up.

Reduce fund overlap to simplify your portfolio.

Active equity funds deliver stronger return potential.

Equity exposure must reduce as goal nears.

Use aligned allocation to meet 10?year goal.

Regular review with Certified Financial Planner is essential.

Emergency buffer and insurance protect your plan.

Stay consistent, review annually, and let time compound returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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