Hello sir I am investing 3000 per month as SIP in kotal small cap fund(regular growth),kotak emerging equity fund(regular growth) and Mirae asset emerging bluechip -regular Growth fund. Pls suggest should I continue with these or not. I am planning to invest for atleast next 7 years.

Ans: Hello and thanks for writing to me. The funds you invest in are good funds and you can continue to invest in them.

Please let me know your objectives for investing and I may recommend other funds.

Ans: Given your long-term investment horizon and diversified portfolio, it's natural to experience periods of lower growth or volatility, especially in specific market segments like small caps. However, it's essential to periodically review your investments to ensure they align with your financial goals and risk tolerance.

Considering your existing SIPs in Kotak Small Cap Fund and PP Flexi Cap Fund, it's advisable to assess their performance against their respective benchmarks and peer funds. If they consistently underperform, you may consider reallocating or discontinuing these SIPs.

Regarding starting a new SIP in Mirae Asset Emerging Bluechip Fund or any other large-cap fund, it's a prudent move to diversify your portfolio across different market segments. However, before making a decision, thoroughly research the fund's historical performance, fund manager's track record, expense ratio, and investment philosophy.

Alternatively, you can explore other large-cap funds known for consistent performance and stability, ensuring they complement your existing investments and contribute to your long-term financial objectives.

Remember, regular portfolio reviews and adjustments are crucial to optimize returns and mitigate risks over the long term. Consulting a financial advisor can provide personalized guidance based on your individual circumstances and investment goals.

Ans: Evaluation of Existing SIP Portfolio and Potential Addition

Current Portfolio Review:

Your current SIP investments in Mirae Asset Tax Saver Fund, Parag Parikh Flexi Cap Fund, Motilal Oswal Midcap Fund, Nippon India Small Cap Fund, and Quant Small Cap Fund reflect a well-diversified approach across different market segments. These funds cater to varying risk appetites and have the potential for long-term wealth creation.

Assessment of Continuing SIPs:

Mirae Asset Tax Saver Fund:

This ELSS fund offers tax benefits under Section 80C of the Income Tax Act and has a track record of delivering consistent returns.
Given your investment horizon of 15-20 years, continuing SIPs in this fund can be beneficial for wealth accumulation while availing tax benefits.
Parag Parikh Flexi Cap Fund:

Known for its global diversification strategy and focus on quality stocks, this fund is suitable for long-term wealth creation.
The fund's flexible allocation across market caps provides stability and growth potential, making it suitable for your investment horizon.
Motilal Oswal Midcap Fund:

Midcap funds tend to be more volatile but offer higher growth potential over the long term.
Considering your extended investment horizon, continuing SIPs in this fund can help capture the growth opportunities presented by mid-cap stocks.
Nippon India Small Cap Fund and Quant Small Cap Fund:

Small-cap funds have the potential for significant growth over the long term but come with higher volatility.
Since you have a long investment horizon, maintaining SIPs in these funds can capitalize on the growth potential of small-cap stocks.
Potential Addition:

Considering adding SBI Contra Fund to your portfolio merits evaluation. Here's why:

Contrarian Approach: SBI Contra Fund follows a contrarian investment strategy, investing in stocks that are undervalued or out of favor.
Diversification: Adding this fund can further diversify your portfolio, as it focuses on stocks across market caps and sectors.
Potential Upside: The fund's contrarian approach can lead to outperformance during market cycles, complementing the growth-oriented nature of your existing SIPs.
Conclusion:

Continuing SIPs in your current portfolio funds align well with your long-term investment horizon of 15-20 years. Additionally, considering the potential benefits of SBI Contra Fund and its diversification advantages, adding it to your portfolio can enhance diversification and potentially boost returns over the long term.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

Your choice of funds looks okay for now however do not fail to review their performance vis-a-vis category average and benchmark for risks & returns every year.

Happy Investing;