I am doing SIP in following funds for 10 years horizon. Kindly suggest if any fund should be changed & to what. All are direct funds. SIP amount & current period of investing

1. Mirrae Asset Emerging Bluechip - Rs 10000/- for 2 years
2. Mirrae Asset Focused 25 - Rs 20000/- for 1 year
3. Axis Focused 25 - Rs 10000/- for 1 year
4. SBI Small Cap - Rs 5000/- for 2 years

Further current MF holdings:

1. L&T emerging Business - Rs 300,000/-
2. BNP Paribas ELSS - Rs 80000/-
3. Axis Blue Chip fund - Rs 65000/- 

How much corpus amount I can expect after 10 years

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 Rishu, thanks for writing to me. The funds you invest in are good funds. As you want to increase your investment by Rs.9,000 every month, you can consider beginning investments in:

1-Edelweiss NIFTY Quality 100 30 Index Fund: Rs.3,000 per month
2-SBI Focused Equity Fund: Rs.3,000 per month
3-Motilal Oswal Focused Fund: Rs.3,000 per month.

Ans: Portfolio Evaluation
You have a well-diversified portfolio. Your SIPs cover various market segments. Diversification reduces risk and improves potential returns. Your funds span mid-cap, balanced, large-cap, small-cap, value, and flexi-cap categories.

Performance and Consistency
Your funds have shown good historical performance. They are managed by reputed asset management companies. This increases the likelihood of consistent returns. However, past performance does not guarantee future results.

Mid-Cap and Small-Cap Funds
Mid-cap and small-cap funds can offer high returns. They also carry higher risk compared to large-cap funds. Market volatility can affect these funds significantly. It's good to balance them with less risky options.

Balanced Advantage Funds
Balanced advantage funds manage equity and debt allocation dynamically. They provide stability during market fluctuations. These funds are suitable for moderate risk profiles. They help in achieving steady growth with lower risk.

Large-Cap Funds
Large-cap funds invest in well-established companies. These companies have stable earnings and growth potential. Large-cap funds are less volatile than mid and small-cap funds. They are suitable for conservative investors.

Value Funds
Value funds focus on undervalued stocks with growth potential. These funds may take time to realize gains. Patience is key when investing in value funds. They can deliver good returns over the long term.

Flexi-Cap Funds
Flexi-cap funds invest across different market capitalizations. This provides flexibility and diversification. They can adjust allocations based on market conditions. These funds offer balanced risk and reward.

SIP Growth and Future Corpus
Increasing your SIP by 10% each year is a wise strategy. It leverages the power of compounding. Over 15 years, this can significantly boost your corpus. Assuming an average annual return of 12%, your corpus could grow substantially.

Continued Monitoring and Adjustments
Regularly review and monitor your portfolio. Market conditions and fund performance can change. Make adjustments as needed to stay aligned with your goals. Consulting with a Certified Financial Planner can provide valuable insights.


You've made excellent fund choices. Your diversified approach reduces risk and enhances potential returns. Regular investments and increasing SIPs show disciplined investing. These habits are key to achieving long-term financial goals.


Investing can be daunting, but you're on the right track. It's important to stay informed and adaptable. Market fluctuations are normal; stay focused on long-term goals. You're building a secure financial future with your SIPs.

Conclusion
Your current SIP selections and strategy are commendable. Continue with your plan and review periodically. Seek advice from a Certified Financial Planner for tailored guidance. Your disciplined approach will yield substantial long-term benefits.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You've built a diversified portfolio covering different market segments, which is a good strategy for long-term growth. Here's a quick review:

Axis Small Cap & Canara Small Cap: You have exposure to small-cap funds which can offer higher growth potential but come with higher volatility. Given your 15-year horizon, these can be suitable, but be prepared for fluctuations.

Axis Bluechip & Mirae Asset Aggressive Fund: These funds provide stability with large-cap and well-diversified equity exposure. They can act as a counterbalance to the volatility of small and mid-cap funds.

Parag Parikh Flexi Cap: A flexible fund that invests across market caps and can provide consistent returns. It offers international diversification which can be beneficial.

Quant Small Cap & PGIM India Midcap: These funds further increase your exposure to mid and small-cap segments. Ensure you're comfortable with the higher risk associated with these categories.

Given your portfolio, it seems well-balanced for long-term growth. However, consider the following suggestions:

Review Fund Performance: Regularly check the performance of your funds against their benchmarks and peers.

Risk Assessment: Ensure you're comfortable with the risk levels, especially with higher allocations to small and mid-cap funds.

Asset Allocation: As you progress, you might want to rebalance your portfolio to maintain desired asset allocation.

New SIPs: Consider adding a large-cap or a diversified equity fund to further diversify your portfolio and reduce risk.

Remember, while these are general guidelines, personal financial planning should be tailored to your specific goals, risk tolerance, and financial situation. It's always advisable to consult with a financial advisor for a comprehensive review and advice tailored to your needs.