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Hardik Parikh | Answer |Ask -Follow

Tax, Mutual Fund Expert - Answered on May 04, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more

Question by Mahesh on May 03, 2023Hindi

Hello Hardik, I have following MF portfolio with total investment of 16,000/- per month. Can you please suggest if i should continue them to generate good returns in long run (10 years horizon). Nippon small cap direct - 3000 ICICI value discovery direct - 3000 Motilal Oswal mulitcap direct - 2000 Tata Digital India direct - 2000 Parag Parekh multicap direct - 3000 Mirae Asset Large cap Direct - 3000

Ans: Hello Mahesh,

I appreciate your interest in seeking advice for your mutual fund portfolio. Considering your 10-year investment horizon, it's essential to maintain a well-diversified portfolio that balances risk and return. Based on the funds you've mentioned, here's a brief overview of your current investments:

Nippon Small Cap Direct - A small-cap fund with potential for high returns but also carries higher risk.
ICICI Value Discovery Direct - A value-oriented fund focusing on undervalued stocks with growth potential.
Motilal Oswal Multicap Direct - A diversified multicap fund investing across market capitalizations and sectors.
Tata Digital India Direct - A sector-specific fund concentrating on technology and digital companies.
Parag Parekh Multicap Direct - A multicap fund with a focus on high-quality companies with a long-term growth perspective.
Mirae Asset Large Cap Direct - A large-cap fund investing in well-established, market-leading companies.
Your current portfolio exhibits a mix of small-cap, multicap, value-oriented, and sector-specific funds. While it has potential for good returns, I would recommend a few adjustments to make it more balanced:

Continue with Nippon Small Cap Direct, ICICI Value Discovery Direct, and Parag Parekh Multicap Direct as they cater to different market segments and investment styles.
Consider reducing the allocation to Tata Digital India Direct, as sector-specific funds carry higher risk. You may allocate this portion to a more diversified equity fund.
Maintain your investments in Motilal Oswal Multicap Direct and Mirae Asset Large Cap Direct, as they provide stability and exposure to large-cap stocks.
To further diversify your portfolio, consider adding a mid-cap fund and an international fund to give you exposure to different market segments and geographies, or a short duration debt fund (given increasing interest rate cycle) if you wish to be risk averse.
Please remember that these suggestions are based on a general analysis of your portfolio. I recommend consulting a professional financial advisor to discuss your specific risk appetite, financial goals, and requirements before making any changes.

Wishing you success in your investment journey!

Best regards,
Hardik

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