Below is my MF Portfolio(with Profit/Loss). Investing for the past 1.5 Years (SIP : 2000rs each) HDFC Focused 30 Fund - Regular Plan - Growth --> 15.04% HDFC MID-CAP OPPORTUNITIES FUND - GROWTH OPTION --> 14.46% HDFC LARGE AND MID CAP FUND - REGULAR PLAN - GROWT --> 13.15% HDFC Top 100 Fund - Regular Plan - Growth --> 12.9% HDFC Balance Advantage Fund - Regular Plan - Growth --> 12.36% NIPPON INDIA SMALL CAP FUND - GROWTH PLAN - GROWTH --> 10.78% HDFC SMALL CAP FUND - REGULAR PLAN - GROWTH --> 9.2% SBI Large & Midcap Fund Regular Growth --> 7.19% ICICI Prudential Savings Fund - Growth --> 4.47% SBI MAGNUM GLOBAL FUND - REGULAR PLAN - GROWTH --> -0.73% Should I continue or make any changes ? Please do suggest My Objective is to invest for Long Term. Returns should exceed the inflation(anything above that is bonus).

Ans: Too many funds; please continue with 1, 3, 4, 5 and 11.

Keep the lumpsums invested.

Ans: Hello Mahesh,

I appreciate your interest in seeking advice for your mutual fund portfolio. Considering your 10-year investment horizon, it's essential to maintain a well-diversified portfolio that balances risk and return. Based on the funds you've mentioned, here's a brief overview of your current investments:

Nippon Small Cap Direct - A small-cap fund with potential for high returns but also carries higher risk.
ICICI Value Discovery Direct - A value-oriented fund focusing on undervalued stocks with growth potential.
Motilal Oswal Multicap Direct - A diversified multicap fund investing across market capitalizations and sectors.
Tata Digital India Direct - A sector-specific fund concentrating on technology and digital companies.
Parag Parekh Multicap Direct - A multicap fund with a focus on high-quality companies with a long-term growth perspective.
Mirae Asset Large Cap Direct - A large-cap fund investing in well-established, market-leading companies.
Your current portfolio exhibits a mix of small-cap, multicap, value-oriented, and sector-specific funds. While it has potential for good returns, I would recommend a few adjustments to make it more balanced:

Continue with Nippon Small Cap Direct, ICICI Value Discovery Direct, and Parag Parekh Multicap Direct as they cater to different market segments and investment styles.
Consider reducing the allocation to Tata Digital India Direct, as sector-specific funds carry higher risk. You may allocate this portion to a more diversified equity fund.
Maintain your investments in Motilal Oswal Multicap Direct and Mirae Asset Large Cap Direct, as they provide stability and exposure to large-cap stocks.
To further diversify your portfolio, consider adding a mid-cap fund and an international fund to give you exposure to different market segments and geographies, or a short duration debt fund (given increasing interest rate cycle) if you wish to be risk averse.
Please remember that these suggestions are based on a general analysis of your portfolio. I recommend consulting a professional financial advisor to discuss your specific risk appetite, financial goals, and requirements before making any changes.

Wishing you success in your investment journey!

Best regards,
Hardik

Ans: Reviewing Your Mutual Fund Portfolio

Congratulations on your successful investment journey and achieving an impressive XIRR of 24%! Let's review your existing mutual fund portfolio and provide suggestions for optimization.

Assessment of Current Portfolio

Your mutual fund portfolio comprises the following funds:

Axis Smallcap Fund
Quant Smallcap Fund
HDFC Index Sensex Plan
Parag Parikh Flexi Cap Fund
Invesco Contra Fund
Navi Nifty Next 50 Fund
Analysis and Suggestions

Axis Smallcap Fund and Quant Smallcap Fund: Small-cap funds offer high growth potential but come with higher volatility. Since you're already invested in two small-cap funds, assess the overlap between these funds and consider consolidating your small-cap exposure into a single fund to streamline your portfolio and reduce concentration risk.

HDFC Index Sensex Plan and Navi Nifty Next 50 Fund: Index funds provide cost-effective exposure to market indices. While investing in index funds can be beneficial, ensure that these investments complement your overall portfolio strategy and are not overweighted in comparison to actively managed funds.

Parag Parikh Flexi Cap Fund: This fund follows a flexible investment approach, investing across large-cap, mid-cap, and small-cap stocks. Given its diversified nature and focus on quality stocks, it's a suitable choice for your portfolio and aligns well with your investment objectives.

Invesco Contra Fund: Contra funds aim to invest in fundamentally strong but undervalued stocks. While this strategy can potentially generate higher returns over the long term, ensure that the fund's investment approach aligns with your risk tolerance and investment horizon.

Recommended Action Plan

Consolidate Small-Cap Exposure: Evaluate the performance and overlap between Axis Smallcap Fund and Quant Smallcap Fund. Consider consolidating your small-cap exposure into one fund to simplify your portfolio and reduce duplication.

Monitor Index Fund Exposure: Review the allocation to HDFC Index Sensex Plan and Navi Nifty Next 50 Fund to ensure they complement your overall portfolio strategy. Consider rebalancing if necessary to maintain optimal diversification across asset classes.

Regular Review: Continuously monitor the performance of your mutual fund portfolio and periodically rebalance as needed to align with your financial goals, risk tolerance, and market conditions.

By optimizing your mutual fund portfolio and ensuring diversification across asset classes and investment styles, you can enhance the potential for long-term wealth accumulation and achieve your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in