Hello sir. I am 39 years old and have a high risk apetite. My goal is to accumulate 2.5 cr by the time i retire. I am currently investing in the following funds by monthly sip. Please review and suggest whether i am on the right track or do i need to make changes. I currently have 12l in in this portfolio. All the investments are in direct growth mode and i increase the sip value by 5-10% every year. 1. Motilal oswal elss 2500 2. Axis mf elss 2500 3. ABSL frontline equity 2000 4. Parag Parikh flexicap 3000 5. Motilal oswal mid cap 3000 6. Sbi small cap 3000 7. Hsbc small cap 1000 8. Tata small cap 2500 9. ABSL money manager 5000

Ans: Hello Biju Singh. Using your current sip and lump sum investment, you can achieve 30 lakh corpus in 8 years with an expected CAGR of 14%. As far as the amount is concerned, no modification is necessary.

In addition, I suggest that Axis Bluechip, HDFC Small Cap and Parag Parikh schemes be revisited with respect to their better peer schemes. I hope this resolves your concern.

Ans: Hello Habeeb. Your portfolio seems over-diversified. I would suggest to reconcise and reshuffle your portfolio with 31.5k SIP. I would suggest reconsider the schemes for LIC MF, Axis AMC & SBI AMC.

Ans: Your current SIP allocation shows a well-diversified portfolio across different market segments, including large-cap, flexi cap, infrastructure, and small-cap funds. Here's a review of your current portfolio and suggestions for your future portfolio:

Review of Current Portfolio
Nifty50 Fund (Rs. 5000/month): This fund provides exposure to the top 50 companies listed on the NSE, offering stability and growth potential. It serves as a core holding in your portfolio, providing diversification across large-cap stocks.

Quant Infra MF (Rs. 3000/month): Infrastructure funds invest in companies involved in infrastructure development, such as construction, energy, and transportation. This sectoral allocation adds diversification but can be volatile due to sector-specific risks.

Nippon Small Cap MF (Rs. 2000/month): Small-cap funds focus on small-sized companies with high growth potential. They offer the opportunity for significant returns but come with higher risk due to the volatility associated with small-cap stocks.

Suggestions for Current Portfolio
1. Diversification: Your current portfolio is well-diversified across different market segments, which is commendable. However, ensure that you regularly review your portfolio to maintain the desired asset allocation and risk profile.

2. Risk Management: Small-cap and infrastructure funds can be more volatile than large-cap or flexi cap funds. Consider your risk tolerance and investment horizon when allocating funds to these sectors.

3. Performance Monitoring: Keep track of the performance of each fund in your portfolio. Regularly review their performance against relevant benchmarks and peer group funds to ensure they are meeting your investment objectives.

Future Portfolio Suggestions
ICICI Nifty50 MF (Rs. 5000/month): Continuing your investment in a Nifty50 fund is a prudent choice, providing exposure to large-cap stocks and stability to your portfolio.

Parag Parikh Flexi Cap Fund (Rs. 3000/month): Flexi cap funds offer flexibility to invest across market capitalizations based on market conditions. This fund adds diversification and growth potential to your portfolio.

Quant Infrastructure MF (Rs. 4000/month): Consider whether you want to maintain the same allocation to infrastructure or if you prefer reallocating some funds to other sectors based on your risk-return preferences.

Nippon India Small Cap MF (Rs. 3000/month): Small-cap funds can offer high growth potential, but they come with higher risk. Evaluate your risk tolerance and consider whether you want to maintain exposure to small-cap stocks or reallocate funds to other sectors.

Conclusion
Your current portfolio shows a thoughtful allocation across different market segments, balancing growth potential with risk management. As you plan to increase your SIP amount from Rs. 10,000 to Rs. 15,000 per month, consider reviewing your asset allocation and risk tolerance to ensure it aligns with your financial goals and investment horizon.

Regularly monitor the performance of your funds and make adjustments to your portfolio as needed. Consulting with a Certified Financial Planner (CFP) can provide personalized guidance and help you make informed decisions about your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Your SIP portfolio seems well-diversified across various categories of equity funds, which is a good approach for long-term wealth creation. Let's review each fund and provide some suggestions:

Core Portfolio (60%):

Parag Parikh Flexicap Fund: This fund follows a flexible investment approach across large, mid, and small-cap stocks. It's known for its quality stock selection and has delivered consistent returns over the years.
JM Flexicap Fund: Another flexi-cap fund, providing exposure to companies across market capitalizations. Ensure you review its performance and consistency compared to peers.
Navi Nifty 50: Investing in an index fund like Navi Nifty 50 provides exposure to India's top 50 companies. It's a low-cost option with a focus on large-cap stocks.
Satellite Portfolio (40%):

Kotak Emerging Equity Fund: This fund focuses on emerging companies with high growth potential. Review its performance and ensure it aligns with your risk appetite.
JM Midcap Fund: Mid-cap funds like JM Midcap can offer higher growth potential but come with higher volatility. Monitor its performance and risk closely.
Tata Smallcap Fund: Investing in small-cap funds can provide exposure to high-growth companies. Ensure you're comfortable with the risk associated with small-cap investing.
Edelweiss Midcap 150 Momentum 50: This fund follows a momentum-based investment strategy, focusing on mid-cap stocks showing positive price momentum. Understand its investment approach and risk profile.
Suggestions:

Monitor Performance: Regularly review the performance of your funds and ensure they're meeting your expectations. Consider replacing underperforming funds with better alternatives.
Risk Management: Given the higher allocation to mid-cap and small-cap funds in your portfolio, be prepared for higher volatility. Ensure your risk tolerance aligns with the risk profile of these funds.
Review Fund Selection: Consider diversifying across fund houses to reduce concentration risk. Also, consider adding an international equity fund or a debt fund for further diversification.
Long-Term Perspective: Stay focused on your long-term investment horizon and avoid making knee-jerk reactions based on short-term market movements.
Overall, your SIP portfolio appears well-structured for wealth creation over the next 10-15 years. However, regularly monitoring and reviewing your portfolio's performance is essential to ensure it remains aligned with your financial goals and risk tolerance. Consider consulting with a financial advisor for personalized guidance based on your individual circumstances.

Ans: Yuvaraj, good on you for taking charge of your future! Six SIPs, that's a well-diversified basket, like a wise investor carrying a basket of exotic fruits – a good mix for long-term growth!

It's fantastic that you have a clear goal – accumulating 75 lakhs in 10 years. While predicting the market perfectly is like trying to hold on to a monsoon cloud, your chosen SIPs seem like a good starting point.

Here's the thing: To reach your mountain peak, you might need a map and a guide. A certified financial planner can be your financial Sherpa! They'll analyze your SIPs (a mix of mid, large, small-cap, and ELSS – that's comprehensive!), your risk tolerance, and suggest any adjustments needed to reach your summit.

Remember, a 10-year horizon gives your investments time to weather ups and downs. Stay focused, keep those SIPs flowing, and with careful planning, you might just reach your 75 lakh target and celebrate with a taste of those exotic fruits from your investment basket!