Hello Sir I m investing 9000 in SBI small cap & 9000 in Quant small cap in Feb'2024. Also 6000 in Parag Parikh Flexi Cap and 6000 in Quant Flexi Cap for the period for 20+ years. Please review my funds. Is these are good to continue.

Ans: It's great to hear that you're investing for the long term! The funds you've chosen have their own investment strategies and risk profiles, which can complement each other well in a diversified portfolio. Parag Parikh Flexi Cap Fund is known for its global diversification and focus on quality stocks, while Canara Robeco Small Cap Fund and Quant Multicap Fund provide exposure to small and mid-cap segments of the market. Quant ELSS offers tax-saving benefits along with equity exposure.

Considering your investment horizon of 10 years and your age, these funds can be suitable. However, it's essential to regularly review your portfolio's performance and make adjustments if necessary. Additionally, continue contributing to NPS for retirement planning, as it offers tax benefits and helps build a retirement corpus.

As always, it's advisable to consult with a financial advisor who can provide personalized guidance based on your financial goals, risk tolerance, and overall financial situation.

Ans: It's wonderful to see your commitment to financial planning. Let's dive into shaping your investment strategy:

• Firstly, I commend you for taking the initiative to invest and secure your financial future.
• It's a wise decision to seek guidance from a Certified Financial Planner like myself to navigate the complexities of investing.

• As we embark on this journey together, let's prioritize understanding your financial goals, risk tolerance, and investment horizon.
• Your unique circumstances and aspirations will guide us in crafting a tailored investment plan that aligns with your needs.

• Remember, investing is not just about chasing returns; it's about achieving your financial objectives while managing risk effectively.
• We'll focus on building a diversified portfolio that balances growth potential with stability to withstand market fluctuations.

• Mutual funds can be a powerful tool in your investment arsenal, offering access to a wide range of asset classes and investment strategies.
• By spreading your investments across different mutual funds, we can mitigate risk and optimize returns over the long term.

• It's essential to review your investment portfolio regularly and make adjustments as needed based on changing market conditions and your evolving financial goals.
• Consult a Certified Financial Planner, to provide ongoing support and guidance to keep you on track towards financial success.

• Lastly, remember that investing is a journey, not a destination.
• Stay disciplined, stay informed, and stay focused on your long-term objectives.

• With dedication and prudent decision-making, you can build a robust investment portfolio that paves the way for a secure and prosperous future.
• Together, let's turn your financial aspirations into reality. You're on the path to financial freedom, and I'm here to help you every step of the way.

Ans: It's crucial to periodically review your mutual fund investments to ensure they align with your financial goals and risk tolerance. While your current selection seems diversified, consider evaluating the performance and consistency of these funds. If any fund consistently underperforms or doesn't align with your objectives, you might consider replacing it with a better-performing or more suitable alternative. Consulting with a financial advisor can provide personalized recommendations based on your financial situation.

Ans: Assessment of Current Investments
Your current investment portfolio shows a thoughtful approach to diversification. You’ve chosen funds across various categories: flexi cap, small cap, mid cap, and ELSS. This is a strong foundation for long-term growth. Let's break down the elements and assess if any adjustments are needed.

Flexi Cap Funds
Strength in Flexibility: Flexi cap funds offer flexibility across market capitalizations. This flexibility can help navigate different market cycles effectively.

Balanced Risk and Return: Your investments in flexi cap funds are well-positioned to balance growth with stability. This makes them a solid choice for your long-term goals.

Small Cap and Mid Cap Funds
High Growth Potential: Small cap and mid cap funds provide exposure to companies with high growth potential. Over a 15-year period, these can deliver substantial returns.

Increased Volatility: However, these funds can be more volatile in the short term. The long-term horizon you have planned helps mitigate this risk.

ELSS Funds
Tax Efficiency: Your investment in an ELSS fund not only offers growth potential but also provides tax benefits under Section 80C. This dual benefit is an excellent strategy.

Long-Term Commitment: ELSS funds come with a lock-in period of three years. This aligns well with your long-term investment horizon, ensuring discipline in your investments.

Public Provident Fund (PPF)
Safe and Secure: Your monthly investment in PPF adds a layer of security to your portfolio. PPF offers assured returns, making it a good tool for risk management.

Tax-Free Returns: The returns from PPF are tax-free, which adds to the overall growth of your corpus. This is a sound strategy for long-term wealth accumulation.

Evaluating the Need for Changes
Given your diversified approach, your portfolio is well-structured for long-term growth. However, let’s consider a few additional points to ensure it remains robust over the next 15 years.

Consideration of Additional Investments
Large Cap Fund: While flexi cap funds provide exposure to large caps, you might consider a dedicated large cap fund. This can further balance your portfolio by adding stability through investments in established companies.

Sectoral/Thematic Fund: If you are willing to take on a bit more risk for potentially higher returns, a small allocation to a sectoral or thematic fund could be considered. This is optional but could add another layer of diversification.

Revisiting PPF Contribution
Balance with Equity Exposure: Your current Rs. 5,000 monthly investment in PPF is a safe choice. However, ensure that it doesn’t overshadow your equity investments. Equity has the potential to outpace fixed income returns over the long term.

Review Periodically: Keep reviewing your PPF contributions in relation to your overall portfolio. Adjustments may be needed based on changing market conditions or life goals.

Long-Term Investment Strategy
Consistency is Key: You’ve been investing for the last three years, which is commendable. Continue with this disciplined approach to build wealth over time.

Periodic Review: It’s essential to review your portfolio periodically. This ensures your investments remain aligned with your financial goals and market dynamics.

Rebalancing: As your investment progresses, consider rebalancing your portfolio. This helps in maintaining the desired asset allocation and managing risk effectively.

Direct vs. Regular Funds
Disadvantages of Direct Funds:

No Professional Guidance: Direct funds lack the guidance of a Certified Financial Planner. This could lead to missed opportunities or higher risks.

Time and Effort: Managing direct funds requires significant time and effort. Without expertise, this could result in suboptimal investment decisions.

Advantages of Investing Through a CFP:

Tailored Advice: A CFP provides personalized advice, ensuring your investments align with your financial goals.

Ongoing Monitoring: Investing through a CFP means your portfolio is regularly monitored and adjusted to market conditions, optimizing your returns.

Final Insights
Your investment strategy is on the right track with a diversified portfolio across flexi cap, small cap, mid cap, and ELSS funds. Your monthly PPF contributions also add a layer of security to your financial plan. However, consider adding a large cap fund for further stability and possibly a sectoral fund for additional diversification.

Stay consistent with your investments, periodically review your portfolio, and consider the guidance of a Certified Financial Planner for optimal results. This will ensure that your investments continue to grow and meet your financial goals over the next 15 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in