New Investor: Am I On The Right Track With My Rs. 3.4 Lakh Mutual Fund Portfolio?

Ans: Too many sectoral funds, its better if you many consider below funds:

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

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: Assessment of Your Investment Portfolio at 24

Congratulations on kickstarting your investment journey at such a young age! It's impressive that you've already built up a corpus of ?180,000 within just over a year. Let's delve into an evaluation of your current investment portfolio to ensure you're on the right path.

Diversification Evaluation

Diversification is like having a variety of dishes at a buffet, ensuring you have options even if one dish doesn't taste as good. Your portfolio seems to encompass a mix of equity and debt funds, which is a good start towards diversification.

Starting your investment journey at 24 reflects your proactive approach towards securing your financial future. Kudos to your financial prudence at such a young age!

It's commendable that you're seeking guidance to ensure your investments align with your long-term financial goals. It's perfectly normal to have doubts, especially when you're relatively new to investing.

Risk Assessment

At 24, you have time on your side, which means you can afford to take on more risk for potentially higher returns. Small-cap funds like Quant Small Cap and Nippon India Small Cap tend to be more volatile but offer the potential for significant growth over the long term.

Evaluation: While these funds can be rewarding, they also come with higher volatility and risk. It's crucial to ensure that your risk appetite aligns with the volatility of these investments.

Asset Allocation

Asset allocation is like baking a cake - you need the right ingredients in the right proportions for the perfect outcome. Your allocation seems skewed towards equity with only one debt fund, ICICI All Seasons Bond Fund.

Assessment: Since you're young, a higher allocation to equity is generally recommended for wealth accumulation over the long term. However, it's essential to periodically rebalance your portfolio to maintain the desired asset allocation.

Regular Monitoring

Just like watering a plant, regular monitoring and adjustments are necessary for your investment portfolio to thrive. Keep track of market trends, fund performance, and your financial goals to make informed decisions.

Evaluation: As you progress in your career and your financial goals evolve, consider reviewing and adjusting your investment strategy accordingly. Regular reviews with a Certified Financial Planner can provide valuable insights and ensure your investments stay aligned with your objectives.

Final Verdict

Overall, you've made a commendable start to your investment journey. However, to ensure you're on the right path, consider the following:

Regularly assess your risk tolerance and adjust your portfolio accordingly.
Keep an eye on the performance of your funds and make changes if necessary.
Continuously educate yourself about investing to make informed decisions.
Consider seeking professional advice from a Certified Financial Planner for personalized guidance.
Best Regards,

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

Ans: Hello;

To begin with, this is okay but you need to top-up the sip amount by
10-15 % each year diligently.

Also review performance of funds annually.

Happy Investing;
X: @mars_invest