Hello sir, I am 30 years old and investing Rs 6000 monthly through SIPs from last 1 years, and planning to continue investing for mid-term to long term purposes. Sir below is my portfolio. It would be great help to me if you suggest some good fund by reshuffling the below portfolio, as some of my funds are under performing. 1. Motilal Oswal Midcap fund- 2000/- 2. Tata Small cap fund- 1000/- 3. Bandhan small cap fund- 1000/- 4. JM flexicap fund- 500/- 5. HDFC Manufacturing fund- 500/- 6. Nippon India liquid fund- 1000/-

Ans: Current Portfolio Check

Your age is 30.

You invest Rs 6,000 every month.

Six funds take this full amount.

Portfolio leans heavy towards small and mid caps.

Sector fund adds extra concentrated risk.

Liquid fund acts as short-term parking only.

Portfolio lacks large-cap and balanced exposure.

Too many funds for such small SIP size.

Underperformance risk rises with fund crowding.

Direct fund mode gives no professional tracking.

Emergency and Risk Cover

Keep at least six months’ expenses aside.

Use liquid or overnight mutual funds.

Add bank sweep FD if comfort needed.

Emergency fund protects SIPs during crises.

Term insurance must cover ten times salary.

Health cover of Rs 10–15 lakhs is sensible.

Add super-top-up for bigger medical shocks.

Insurance stays separate from investing always.

Goal Mapping

Write each goal on paper first.

Short term means three years or less.

Mid-term means four to seven years.

Long term means eight years or more.

Tag every rupee to one clear goal.

Example goals: car, house down-payment, child education, retirement.

Do not mix goal buckets in one fund.

Clear tagging prevents emotional withdrawals later.

Fund Performance Assessment

Motilal Oswal Midcap shows high volatility.

Returns beat benchmark only in bull phases.

Tata Small Cap is new yet aggressive.

Bandhan Small Cap struggled after rebranding.

JM Flexicap has short patchy record.

HDFC Manufacturing is sector heavy and cyclical.

Nippon Liquid is fine for parking only.

Too much overlap across small cap funds.

Portfolio risk is higher than your horizon demands.

Problems with Current Mix

Concentration in small caps increases drawdown risk.

Sector fund adds extra cyclic dependency.

Lack of large cap dampens stability.

No hybrid or debt allocation for balance.

Six funds dilute monitoring effort.

Direct plans lack Certified Financial Planner guidance.

Why Shift to Regular Plans

Direct funds charge lower fees only.

They expect full self-monitoring by investor.

Many investors skip yearly reviews.

Missed reviews hurt returns badly later.

Regular plans include MFD service and tracking.

Certified Financial Planner reviews portfolio yearly.

Planner suggests timely switches and rebalancing.

Advice cost is tiny versus mistakes saved.

Disadvantages of Index Funds

Index funds copy market moves exactly.

No active shield during market falls.

They never beat benchmark returns.

They hold weak companies also by weight.

You need extra returns above inflation.

Active funds search quality stocks actively.

Skilled managers reduce risk through research.

Long term wealth builds faster with active funds.

Suggested Portfolio Reshuffle

Step One: Consolidate Equity Core

Keep one flexi cap as main core.

Parag Parikh Flexi Cap suits this role.

Switch to regular plan version for guidance.

Allocate Rs 2,500 monthly here.

Step Two: Add Large and Mid Blend

Mirae Large and Mid Cap gives stability.

Stay with it in regular plan.

Allocate Rs 2,000 monthly here.

Step Three: Single Mid Cap Exposure

Retain HDFC Midcap Opportunities only.

Stop Motilal and Tata small caps.

Switch HDFC to regular plan mode.

Allocate Rs 1,000 monthly here.

Step Four: Remove Bandhan Small Cap

Redeem Bandhan small cap gradually.

Shift proceeds to large and mid blend.

Step Five: Exit HDFC Manufacturing

Sector fund adds unnecessary cyclic risk.

Redeem and redirect into flexi cap fund.

Step Six: Maintain Liquid Bucket

Keep Nippon Liquid for emergency buffer.

No monthly SIP needed here after goal.

Top up manually when salary inflows allow.

Total new SIP remains Rs 5,500 monthly.
You still have Rs 500 spare each month.
Use this spare towards debt fund SIP.

Introducing Debt Component

Start one short-duration debt mutual fund.

Use regular plan with CFP advice.

Allocate Rs 500 monthly into it.

Debt part cushions equity during falls.

Why Not Keep Multiple Small Cap Funds

Small caps swing wildly in downturns.

Single focused mid cap already gives punch.

Holding three small caps adds duplicate exposure.

Concentration kills diversification benefit.

Reviewing Direct Stock Dreams

You did not mention direct stocks.

If planning later, cap them at 10% of corpus.

Individual stocks demand research time.

Mutual funds already pool expert research.

Growing SIP Amount Each Year

Increase SIP by 10% when salary rises.

Extra money rides power of compounding early.

Use salary appraisal months for auto top-up.

Keep same fund list while topping amounts.

Two Separate Goal Buckets

Child Education Bucket

Horizon 16 years ahead still.

Use flexi cap and mid cap mix.

Add children benefit hybrid fund later.

Tag one fund exclusively for this goal.

Retirement Bucket

Horizon more than 25 years ahead.

Use flexi cap, large and mid and mid cap.

Gradually add NPS or PPF for debt portion.

PPF as Safe Complement

Open PPF account next month.

Deposit Rs 1,000 monthly to start.

Safe, tax-free, 15-year lock fosters discipline.

Helps build debt side of retirement pool.

Systematic Transfer Plan Option

Lumpsum from redeemed funds can sit in liquid.

Use STP into chosen equity funds monthly.

This spreads market timing risk automatically.

Rebalancing Rules

Check equity versus debt mix yearly.

Equity value may surge; shift excess to debt.

In big market fall, move debt back to equity.

CFP guides these switches calmly.

Tax Considerations

Equity LTCG above Rs 1.25 lakh taxed at 12.5%.

STCG taxed flat 20%.

Debt fund gains taxed per income slab.

Use harvest strategy when nearing goal.

harvest means booking LTCG yearly up to limit.

This keeps tax outgo manageable.

Regular Plan Cost Myth Busting

Regular expense ratio seems higher upfront.

Cost covers yearly review and behavioural coaching.

Poor DIY choices cost much more secretly.

Consistent guided returns beat lower-cost chaos.

Monitoring Underperformance

Mark calendar for annual review date.

Compare each fund with category median.

If fund trails for three years consecutively, exit.

Replace with better fund suggested by CFP.

Behavioural Discipline Tips

Do not pause SIP during market crash.

Crash units bought cheap give future gain.

Ignore daily news noise completely.

Focus on long horizon goals only.

Celebrate small milestones to stay motivated.

Avoiding Common Mistakes

Do not start another sector fund.

Do not buy insurance cum investment schemes.

Avoid loans for consumption purchases.

Do not borrow to invest in equities.

Avoid chasing past star performers blindly.

Using Bonus and Windfalls

Put 50% of any bonus into equity funds.

30% into debt portion for balance.

20% can reward your family needs.

This splits enjoyment and discipline nicely.

Protecting Against Inflation

Equity allocation fights inflation strongly.

Debt and PPF give stability but lag inflation slightly.

Balanced mix preserves purchasing power.

Review inflation assumptions in planning yearly.

International Equity Exposure

Your portfolio lacks global diversification currently.

Add one international flexi equity fund later.

Allocate 5% of total corpus there.

Currency diversification helps risk spreading.

Liquidity Ladder

Emergency fund sits in liquid fund.

Next six months needs in short debt fund.

Long term money in equity funds.

Ladder ensures funds available when required.

Estate Planning Early

Write a simple will before investments grow bigger.

Nominate spouse in all mutual funds now.

Update nomination after any family change.

Financial Checklist Every Year

Check emergency fund size.

Review insurance coverage adequacy.

Review fund performance.

Rebalance asset allocation.

Increase SIP amounts.

Update goal amounts for inflation.

Revise will and nominations.

Cost Averaging Benefit

SIPs buy more units when markets dip.

Less units when markets rise.

This smooths purchase price long run.

Maintain uninterrupted SIP flow always.

Role of Certified Financial Planner

CFP studies your goals and risk appetite.

Designs asset allocation strategy.

Monitors fund performance quarterly.

Suggests tax efficient withdrawal later.

Provides behavioural coaching during volatility.

Helps rebalance emotions along with money.

Future Income Increase Plan

When salary grows, double debt contribution first.

Next, raise equity SIP proportionally.

Maintain expense growth slower than income growth.

This widens surplus for investing.

Cyclical Sector Risk Explanation

Manufacturing fund invests in limited factories.

Sector cycles boom and bust sharply.

Not ideal for core portfolio.

Keep such exposure only if studied deeply.

Better stick with diversified flexi cap instead.

Midcap Versus Small Cap

Midcaps are established companies still growing.

Small caps are fledgling firms with higher risk.

Midcap fund already adds growth factor.

Too much small cap exposure increases volatility.

Investor Psychology Guardrails

Set target price triggers to review, not sell.

Use planner as accountability partner.

Regular meetings maintain focus on plan.

SIP Pause Policy

Pause only if job loss emergency arises.

Resume immediately after stability returns.

Avoid switching funds due to temporary underperformance.

Systematic Withdrawal Plan Later

When goal time arrives, shift units gradually to liquid.

Use SWP for tuition or retirement cash flow.

SWP gives monthly income and tax control.

Tracking Tools

Use single app to track all regular plans.

Provide access to planner for real-time advisory.

Avoid multiple apps causing confusion.

Retirement Framework

Start separate NPS Tier I this year.

Contribute Rs 2,000 monthly alongside existing SIPs.

NPS adds discipline and extra tax benefit.

Choose 75% equity allocation inside NPS now.

Slide down equity slowly after age 45.

Child Education Framework

Estimate future fees with 8% inflation estimate.

Map required corpus to SIP calculators.

Increase child fund SIP accordingly each year.

Adapting to Rule Changes

Tax laws may change again later.

CFP remains updated and alters plan quickly.

Regular funds distribution channel relays quick changes.

Reshuffle Execution Steps

Stop SIPs in Motilal, Tata, Bandhan immediately.

Redeem existing units gradually via STP.

Redirect redemption money into Parag Flexi core.

Start new SIP of Rs 500 in debt fund.

Switch all existing funds from direct to regular.

Register with MFD who holds CFP credential.

Set review meeting date every March.

Expected Benefits after Reshuffle

Portfolio drops to four funds manageable.

Large and midcap part gives stability.

Flexi cap offers global and domestic blend.

Midcap slice retains growth potential.

Debt slice cushions shocks.

Emergency corpus stays safe.

Annual review picks any underperformance early.

What to Watch in Next Months

Track market volatility impact on midcap.

Check debt fund credit quality updates.

Monitor PPF interest announcements annually.

Increase emergency fund faster if job risk rises.

Finally

Your investing journey started well already.

Reshuffle reduces risk and boosts manageability.

Adopt regular plans with CFP guidance now.

Avoid index and direct funds shortcomings.

Keep emergency fund growth on priority.

Increase SIP amounts with income hikes.

Rebalance asset mix every year patiently.

Tag each investment to one clear goal.

Stay invested through market moods gently.

Wealth builds quietly with discipline and time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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