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Ramalingam Kalirajan |8100 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Rajneesh on Sep 11, 2023Hindi

Hello Hardik ji, hope you’re doing good. I have the following MFs running (except SBI, all are barely 6 months old) for which I want your advice and guidance on change of scheme or reshuffling of amount or whatever. SBI Contra: 15k per month SBI Small Cap: 20k per month SBI Equity Hybrid: 5k per month Quant Small Cap: 25k per month Quant Mid Cap: 10k per month Quant Flexi Cap: 8k per month Tata Digital India Fund: 12k per month Nippon India Growth: 5k per month Nippon India Nifty Smallcap 250: 2.5k per month Parag Parikh Flexi Cap: 7k per month Motilal Oswal Nasdaq 100: 5k per month ICICI Technology: 5k per month ICICI Transportation & Logistics Fund: 2.5 k per month HDFC Transportation & Logistics Fund: 5k per month UTI Flexi Cap: 5k per month Total investment: 1.34 Lac per month My goal is to create a corpus of about 3 cr in next 7 yrs. please suggest if I’m on the right track. Recently I did the portfolio balancing and terminated Axis MF schemes as they were not yielding good returns. Btw, my existing investments in MFs have already created a corpus of 30L.

Ans: It's great to see your proactive approach to investing in mutual funds. Your diversified portfolio reflects a mix of large-cap, mid-cap, small-cap, sectoral, and international funds, which is a good strategy for potential growth. However, it's essential to periodically review your portfolio to ensure it remains aligned with your financial goals and risk tolerance.

Here are a few suggestions:

Consolidation: With such a large number of funds, consider consolidating your holdings to reduce complexity and streamline your portfolio. Focus on high-performing funds with strong track records and consistent returns.
Risk Management: Given your goal to create a corpus of 3 crores in 7 years, ensure that your portfolio reflects an appropriate balance between growth potential and risk. Consider rebalancing your allocation towards funds with proven performance and lower volatility.
Regular Monitoring: Keep a close eye on the performance of your funds and be prepared to make adjustments as needed. If any funds consistently underperform or fail to meet your expectations, consider replacing them with better-performing alternatives.
Goal Alignment: Continuously assess whether your investment choices are in line with your financial goals, time horizon, and risk appetite. Adjust your strategy accordingly to ensure you're on track to achieve your target corpus of 3 crores.
Overall, it seems like you're on the right track with your investments, but a periodic review with the help of a Certified Financial Planner can provide valuable insights and ensure your portfolio remains optimized for achieving your financial goals. Keep up the good work and stay focused on your long-term objectives!

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