Below is my MF portfolio. I am planning to invest for the next 13-15 years for retirement and as well as my son's higher education who is 4.5 years old. I am 36 years old.

Please let me know if I can consolidate my investments. Apart from this I have investments in PPF, NPS as well.

Fund Name	Category	Amount/Month
Quant Tax Plan - Direct Plan	ELSS	4000
Mirae Asset Tax Saver Fund - Direct Growth	ELSS	6000
Axis Long Term Equity Fund - Direct Growth	ELSS	2000
Kotak Flexicap Fund - Direct Growth	Flexi Cap	2500
PGIM India Flexi Cap Fund - Direct Plan - Growth	Flexi Cap	4000
Quant Active Fund	Flexi Cap	2500
Nippon India Index Fund S&P BSE	Index Fund	4000
Mirae Asset Emerging Bluechip Fund - Direct Plan - Growth	Large and Mid Cap	2000
Axis Bluechip Fund - Direct Growth	Large Cap	2000
PGIM India Midcap Opportunities Fund - Direct Plan -G	Mid Cap	4000
Quant Multi Asset Fund	Multi Asset	3000
Bank of India Small Cap	Small Cap	2000
Canara Robeco Small Cap Fund - Direct Growth	Small Cap	4500
Axis Small Cap	Small Cap	2000
Quant Small Cap	Small Cap	2000
Total		46500

Ans: You may continue with 1, 2, 3, 4, 7, 16 and 20.

 

Ans: In bluechips, please continue with ICICI Pru Bluechip fund growth

Most of the funds are decent!

Ans: Given your goal of building a retirement corpus of 2 crores in 10 years and your current portfolio, here are some suggestions:

Increase SIP Contributions: Consider increasing your SIP amounts in high-performing funds like Parag Parikh Flexi Cap and PGIM India Midcap Opportunities Fund, which have shown good potential for long-term growth.

Review and Consolidate: Evaluate the performance of all your funds and consider consolidating your portfolio to fewer, well-performing funds to simplify management and potentially enhance returns.

Focus on Quality: Prioritize funds with strong track records, consistent performance, and experienced fund management teams. Consider adding large-cap and diversified equity funds for stability and balanced growth.

Asset Allocation: Ensure a balanced asset allocation across equity, debt, and gold funds based on your risk tolerance and investment horizon. Reallocate surplus funds strategically to maintain a diversified portfolio.

Regular Review: Monitor your portfolio regularly and make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.

Consider consulting with a financial advisor for personalized advice tailored to your specific circumstances and goals.

Ans: You have taken a great step by wanting to consolidate and balance your mutual fund portfolio. Since you are managing it yourself, it is essential to have a structured approach.

Below is a detailed guide to help you refine your investments.

Understanding Your Current Portfolio
You have multiple investments across different fund categories.
There is a mix of large-cap, mid-cap, small-cap, flexicap, multicap, and balanced advantage funds.
You also have exposure to thematic and sectoral funds.
Index funds are present, which are passively managed.
Now, let’s assess and create a balanced, simplified approach.

Disadvantages of Index Funds
They do not offer protection in a falling market.
They include all stocks in an index, even the underperforming ones.
Actively managed funds have the potential to outperform and deliver better long-term returns.
Fund managers in active funds adjust portfolios based on market conditions, which helps in downside protection.
You should reduce reliance on index funds and allocate more to actively managed funds.

Disadvantages of Direct Plans
You miss out on expert guidance from a Certified Financial Planner.
Market conditions change, and fund performance needs regular tracking.
A Certified Financial Planner helps in portfolio rebalancing, risk assessment, and taxation strategies.
Investing through an MFD with CFP credentials ensures better financial planning support.
Shifting to regular plans with the right advisor can optimize returns.

Key Issues in Your Portfolio
Too Many Funds: Managing multiple funds can be complex and lead to overlapping investments.
Sectoral Fund Exposure: Investing in sector-based funds increases risk.
Index Fund Exposure: They do not offer active risk management.
Need for Consolidation: Fewer funds with well-defined objectives will help optimize performance.
A balanced approach ensures you get the best from actively managed funds.

Steps to Balance Your Portfolio
1. Reduce the Number of Funds
Holding many funds does not mean better diversification.
Reduce overlapping funds that invest in the same market segment.
A well-diversified portfolio with fewer funds is easier to manage.
2. Focus on Actively Managed Funds
Move away from passive funds to benefit from fund manager expertise.
Active funds provide better downside protection during market corrections.
The right funds with experienced fund managers can outperform index funds over time.
3. Reduce Sectoral and Thematic Funds
Sectoral funds depend on industry performance and can be highly volatile.
They are not suitable for long-term wealth creation.
It is better to focus on diversified equity funds instead.
4. Maintain a Proper Asset Allocation
Large-Cap Funds: Stability and consistent growth.
Mid-Cap & Small-Cap Funds: Growth potential with higher risk.
Balanced Advantage Fund: Dynamic asset allocation for risk management.
Flexicap & Multicap Funds: Exposure across market segments.
Each category serves a purpose and should be included in the right proportion.

How to Consolidate Your Portfolio
Step 1: Retain a Few High-Quality Funds
Keep one large-cap fund for stability.
Have one or two flexicap/multicap funds for diversification.
Include one mid-cap and one small-cap fund for high-growth potential.
Retain a balanced advantage fund for market protection.
This reduces overlap and creates a well-balanced structure.

Step 2: Exit Unnecessary Funds Gradually
Sell underperforming and duplicate funds in a phased manner.
Avoid exiting everything at once to manage tax implications.
Invest in a few well-performing funds for better long-term results.
Step 3: Rebalance Portfolio Annually
Once a year, check if your asset allocation matches your risk tolerance.
Adjust investments based on market conditions and personal financial goals.
Ensure your portfolio remains aligned with your objectives.
Taxation Impact While Restructuring
Equity Funds (Held for Less than 1 Year): 15% short-term capital gains tax.
Equity Funds (Held for More than 1 Year): 10% tax on gains exceeding Rs. 1 lakh.
Balanced Advantage Funds: Taxed as equity.
Selling in a phased manner can reduce the tax burden.

Long-Term Portfolio Strategy
Keep a core portfolio of diversified funds.
Avoid unnecessary churning of investments.
Increase SIP amounts in well-performing funds over time.
Focus on long-term wealth creation rather than short-term market movements.
By simplifying and optimizing your portfolio, you can achieve better growth and stability.

Finally
You have already built a strong investment habit through SIPs.

Now, consolidating and refining your portfolio will help maximize returns.

Focus on active fund management, asset allocation, and long-term consistency.

A streamlined portfolio ensures better wealth creation with lower complexity.

If you need further insights, feel free to ask!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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