I am continuing my sip of Rs.17000/- per month since 2 year in parag parikh flexi cap direct. Axis small cap. Nippon small cap. Quant small cap. Canara robeco small cap. Icici prudential tech fund . Is there any change for my portfolio. Investment horizon is 15 year plus. Risky invester of age 35 . Please suggest.

Ans: These are good funds in their categories, ie ELSS, focused and short duration debt fund.

If the objective is growth and corpus creation, debt fund can be substituted with equity fund -- ie DSP Quant will be suitable.

 

Ans: Hello Sarath and thanks for writing to me. You can continue investing in Nippon India Small Cap Fund, PPFAS Flexi Cap Fund and Canara Robeco Bluechip Fund.

You can consider pausing SIPs in UTI Nifty Next 50 and instead consider starting SIP in Edelweiss NIFTY 100 Quality 30 Index Fund.

Ans: Current Investment Strategy

You're investing Rs. 41,000 monthly in mutual funds.
Your portfolio has a mix of different fund types.
You plan to invest till 2030 and stay invested after.

Positive Aspects

Good job starting SIPs for wealth creation.
Your portfolio has a nice mix of fund types.
Long-term investment plan is smart for wealth building.

Areas for Improvement

Your portfolio might be too complex to manage.
Too many small-cap funds could increase risk.
Direct plans need more work from you.

Risk Assessment

At 59, you might want less risky investments.
Small-cap funds can be very risky.
Consider reducing small-cap exposure as you age.

Fund Selection

Your funds are from good companies.
But having six funds might be too many.
Think about cutting down to 3-4 funds.

Regular vs Direct Plans

Direct plans have lower costs, but need more work.
Regular plans give you expert help.
A Certified Financial Planner can guide you better.

Benefits of Regular Plans

Get expert advice on fund selection.
Regular portfolio reviews and rebalancing.
Help with paperwork and tax planning.

Disadvantages of Direct Plans

You must research and choose funds yourself.
No professional guidance for your portfolio.
Might miss out on better investment options.

Suggested Changes

Think about moving to regular plans.
Reduce number of funds to 3-4.
Lower your small-cap exposure.

Asset Allocation

Have a good mix of large, mid, and small-cap.
Add some debt funds for stability.
Review allocation yearly and adjust as needed.

Tax Planning

Check if you're using ELSS funds for tax saving.
If not, consider adding one to your portfolio.
This can help reduce your tax burden.

Monitoring and Rebalancing

Check your portfolio performance every 6 months.
Change funds if they don't do well for long.
Keep your asset mix in line with your goals.

Finally

Your investment plan is good, but needs some tweaks.
Consider expert help for better results.
Regular review and rebalancing can improve your returns.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in