Should I exit Edelweiss small cap fund and invest in a different small cap fund?

Ans:

1. Exit
2. Continue
   
   

Ans: Better ELSS schemes are available for consideration as under

ELSS:

1.  Canara Robeco Equity Tax Saver Fund - Growth
2. Axis Long Term Equity Fund - Growth
3. Motilal Oswal Long Term Equity Fund – Growth

Ans: I understand you're concerned about your Edelweiss Technology Fund investment going down. Market fluctuations are normal, so let's take a step back and assess!

Focus on Long-term: Did you choose this fund for a long-term goal (like retirement)? Short-term dips shouldn't derail your plan if the fund aligns with your goals.

Review Investment Plan: Did you discuss your risk tolerance with a Certified Financial Planner (CFP)? Technology funds can be volatile, so ensure it matches your risk profile.

Stay Calm & Diversified: Don't panic-sell! A diversified portfolio helps manage volatility. Consider this a learning experience.

If you're unsure, consulting a CFP can help. They can assess your entire portfolio and recommend if switching funds is suitable for your situation.

Remember, patience is key in investing!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: At 27, you're making proactive investment decisions, which is commendable. Let's review your current investment strategy and explore potential adjustments:

Assessing Your Current Portfolio
SBI Mid Cap Fund and Small Cap Fund: Mid-cap and small-cap funds offer growth potential but come with higher volatility. Consider your risk tolerance and investment horizon when evaluating these funds.

ABSL Flexi Cap Fund: Flexi-cap funds provide flexibility to invest across market capitalizations based on market conditions. They offer diversification and potential for growth.

HDFC Midcap Fund: Similar to SBI Mid Cap and Small Cap funds, HDFC Midcap Fund focuses on mid-cap stocks. Assess whether the overlap in mid-cap exposure across funds aligns with your diversification goals.

Considerations for Continuation or Switch
Performance: Evaluate the performance of your current funds relative to their benchmarks and peers. Consistent underperformance may warrant a review.

Fund Manager Track Record: Assess the track record and expertise of the fund managers managing your investments. Consistency in performance and adherence to investment objectives are key considerations.

Fund Objectives and Strategy: Ensure that the investment objectives and strategies of your funds align with your financial goals and risk profile.

Potential Actions
Review Fund Performance: Conduct a detailed analysis of the performance of each fund in your portfolio over different time periods.

Consult with a Financial Advisor: Consider consulting with a Certified Financial Planner (CFP) to review your investment strategy and explore alternative fund options based on your goals and risk tolerance.

Consider Diversification: Evaluate the need for diversification across asset classes and investment styles to mitigate risk and enhance long-term returns.

Conclusion
While your current investment strategy demonstrates a focus on growth-oriented funds, it's essential to periodically review your portfolio and make adjustments as needed. Assess the performance, objectives, and risk profile of your funds, and consider consulting with a financial advisor for personalized guidance.

Best Regards,

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