Hello Sir, Hope You Are doing well. I would like to thank you for the help that you provide to us. I started Investing in Mutual Fund almost 3 Yrs Ago. Can you please analyse my portfolio, and suggest any changes, if required. Axis Midcap Invested-2.40L Current-2.90L(5K SIP Ongoing) Axis BlueChip Invested-1.95L Current-2.19L(10K SWP) Inactive Quant Liquid Plan Invested- 1.19L Current-1.27L(Emergency Fund) Mirae Asset Emerging BlueChip Invested- 67.5K(Increased-12.5K) Current-81.41K(Active 2.5K) Nippon IndiaSmall Cap Invested-42.5K Current-61.58K(2.5K SIP Active) SBI Tech Opp Fund Invested-50K Current-55.06K(2.5K SIP Active) Tata Digital India Fund Invested-37.5K Current-40.99K (Inactive SIP) Quant Small Cap Invested-15.00K Current-17.67K(2.5K SIP Active) Mirae Asset Large Cap Invested-00.00K(10K SIP Started) Moving from Axis BlueChip I know you advice against thematic Fund, but I would like to continue my Investment in that Fund. My Age is 27Yrs, 1Month, I am planning to go for MBA Now, and will discontinue my SIPs until I get a Job (Except for a few Internship Lump sum). My Goals are 5Cr for a House in 20Yrs, 3Cr for My Children Education in 20Yrs and 10Cr for Future Retirement Prospects in 30Yrs. I will be increasing my SIP to 35K from Current 20K. Please Advice. Thank You.

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: Thank you for sharing your portfolio and financial goals. It's commendable that you have started investing early and have clear objectives. Let’s analyze your current investments and suggest adjustments to align with your goals of Rs 5 crore for a house, Rs 3 crore for children’s education, and Rs 10 crore for retirement.

Portfolio Analysis
Your portfolio is diverse, encompassing midcap, bluechip, small cap, and sector-specific funds. This diversity can work well if balanced correctly. Here's a detailed look at your current investments:

Axis Midcap Fund
Invested: Rs 2.40 lakhs
Current Value: Rs 2.90 lakhs
SIP: Rs 5,000 ongoing
Midcap funds offer high growth potential, and your investment has performed well.

Axis Bluechip Fund
Invested: Rs 1.95 lakhs
Current Value: Rs 2.19 lakhs
SWP: Rs 10,000 (Inactive)
Bluechip funds provide stability. However, you’re shifting this to Mirae Asset Large Cap Fund, which is also a strong performer.

Quant Liquid Plan
Invested: Rs 1.19 lakhs
Current Value: Rs 1.27 lakhs
This serves as your emergency fund, which is essential for liquidity.

Mirae Asset Emerging Bluechip Fund
Invested: Rs 67.5K
Current Value: Rs 81.41K
SIP: Rs 2,500 active
Emerging bluechip funds balance between large and midcap stocks, providing good growth potential.

Nippon India Small Cap Fund
Invested: Rs 42.5K
Current Value: Rs 61.58K
SIP: Rs 2,500 active
Small cap funds are risky but can yield high returns. Your investment here is performing well.

SBI Technology Opportunities Fund
Invested: Rs 50K
Current Value: Rs 55.06K
SIP: Rs 2,500 active
Thematic funds like this focus on specific sectors, offering high risk and reward. Your investment is performing decently.

Tata Digital India Fund
Invested: Rs 37.5K
Current Value: Rs 40.99K
This fund is sector-specific and inactive. Sector-specific funds should be approached with caution due to their volatility.

Quant Small Cap Fund
Invested: Rs 15K
Current Value: Rs 17.67K
SIP: Rs 2,500 active
This small cap fund is performing well, showing good growth.

Mirae Asset Large Cap Fund
Invested: Rs 0
SIP: Rs 10,000 started
Large cap funds provide stability and are a good replacement for your Axis Bluechip Fund.

Recommendations
Considering your goals and current portfolio, here are some recommendations:

Continue and Increase SIPs
Increasing your SIPs to Rs 35,000 from Rs 20,000 is a wise decision. This will significantly enhance your corpus over the long term.

Maintain Diversification
Maintaining diversification across large cap, mid cap, and small cap funds balances growth and risk. Continue with your current funds but with some adjustments.

Consider a Balanced Fund
Incorporate a balanced or hybrid fund to provide stability and moderate growth. These funds invest in a mix of equity and debt, reducing volatility.

Focus on Long-Term Goals
Your goals are achievable with disciplined investing. Ensure your investments align with your time horizon and risk tolerance.

Axis Midcap Fund
Continue your SIP in this fund. It offers good growth potential, which aligns with your long-term goals.

Mirae Asset Emerging Bluechip Fund
Maintain your investment in this fund. It balances growth from large and midcap stocks, fitting well with your portfolio.

Nippon India Small Cap Fund and Quant Small Cap Fund
Keep investing in these small cap funds. They add high growth potential, which is essential for long-term goals.

Mirae Asset Large Cap Fund
This is a good addition to replace your Axis Bluechip Fund. Large cap funds provide stability, essential for a balanced portfolio.

SBI Technology Opportunities Fund
Thematic funds can be volatile. If you wish to continue, limit exposure to prevent excessive risk.

Tata Digital India Fund
Since it's inactive, consider redirecting this investment to a more diversified fund or balanced fund.

Emergency Fund and Liquidity
Ensure your Quant Liquid Plan remains funded for emergencies. This is crucial for financial stability.

Regular Review and Rebalancing
Monitor your portfolio regularly and rebalance as needed. Market conditions change, and your portfolio should adapt accordingly.

Consulting a Certified Financial Planner
Working with a Certified Financial Planner can provide personalized advice and ensure your investment strategy aligns with your financial goals.

Conclusion
Your proactive approach to investing is admirable. By maintaining diversification, increasing SIPs, and focusing on long-term goals, you are well-positioned to achieve your financial objectives. Regular monitoring and consulting with a Certified Financial Planner will further enhance your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's great to see you diversifying your investments through mutual funds. Let's review your portfolio and provide some guidance.

Starting with your SIPs, investing 5000 each in UTI Nifty 50 index fund, Parag Parikh flexicap, and Quant flexi cap offers a balanced approach across different market segments. These funds provide exposure to large-cap, flexi-cap, and multi-cap segments, respectively, allowing for diversification and potential growth opportunities.

Adding 3000 each in ICICI Midcap 150 index fund and Kotak large & midcap fund introduces exposure to mid-cap stocks, which have the potential for higher growth but also come with increased risk. Given your investment horizon of 2-3 years for SIPs and plans to keep the accumulated amount for the next 5 years, it's essential to monitor these funds closely, considering the market conditions and fund performance.

It's commendable that you have investments in equity shares, Sovereign Gold Bonds (SGBs), and fixed deposits (FDs) as well. This diversification helps spread risk and aligns with your retirement goals.

Considering your current age of 42 and the plan to retire in the next 6-7 years, it's crucial to regularly review and rebalance your portfolio to ensure it remains aligned with your financial objectives and risk tolerance.

As you approach retirement, consider gradually shifting your portfolio towards more conservative investments to protect your capital and generate stable income streams.

Overall, your mutual fund portfolio seems well-diversified, considering your investment horizon and retirement goals. However, it's advisable to periodically reassess your portfolio and make adjustments as needed based on changing market conditions and personal circumstances.

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

Ans: It's commendable that you're actively managing your mutual fund portfolio to align with your financial goals, especially with retirement on the horizon. Your diversified approach across various mutual fund categories reflects a well-thought-out strategy.

Starting SIPs in UTI Nifty 50 index fund, Parag Parikh flexicap, Quant flexi cap, ICICI Midcap 150 index fund, and Kotak large & midcap fund indicates a mix of passive and active strategies catering to different market segments. This diversification can potentially help mitigate risk while optimizing returns over time.

Given your investment horizon of 2-3 years for SIPs and a plan to hold the accumulated amount for the next 5 years, it's crucial to regularly review your portfolio's performance and make adjustments as needed. Additionally, ensure that your overall asset allocation remains in line with your risk tolerance and retirement timeline.

Considering your existing investments in equity shares, SGBs, and FDs, maintain a balanced allocation that aligns with your retirement goals and risk appetite. Consulting with a Certified Financial Planner can provide personalized guidance and ensure your investment strategy remains on track towards achieving your retirement objectives. Keep up the proactive approach, and with disciplined investing and periodic reassessment, you're on the right path towards a secure retirement.