Hello sir My name is Jagan charak .Me and my wife together earns Rs 210000. My Investment is as SBI Contra Direct Growth -20000 kotak flexi cap fund -11000 Canera robeco emerging equities-10000 Mirae asset tex saver fund -15000 Axis Mid cap fund -10000 Gpf subscription -35000 Is it ok with these funds .please guide

Ans: Please continue

Ans: Your investment approach appears to be diversified, covering different fund categories like flexicap, balance advantage, contra, and thematic funds. However, let's analyze it considering some broader perspectives.

Firstly, your allocation to each fund should align with your investment goals, risk tolerance, and time horizon. With an investment horizon of three years and aiming for a corpus of Rs 1 Cr, it's essential to strike a balance between growth-oriented and less volatile assets.

The funds you've chosen are known for their strong performance and management track record. Still, it's crucial to ensure that the allocation reflects your risk appetite and goals. For instance, thematic or innovation funds can be volatile due to their concentrated exposure.

Also, the monthly investment of Rs 20,000 in each of the first three funds might lead to an over-allocation to those funds, given the smaller allocation to the last two funds. Consider revisiting the allocation to ensure diversification across all chosen funds.

Moreover, with a three-year horizon, it's important to be prepared for market volatility. While equity investments can provide higher returns over the long term, they can be volatile in the short term. Therefore, having a balanced approach with some allocation to debt or balanced funds might help mitigate risks.

Lastly, always review and adjust your portfolio periodically, considering market conditions and changes in your financial situation. Consulting a Certified Financial Planner can provide personalized advice tailored to your needs and goals, ensuring you're on the right track to achieve your financial objectives.

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 commendable that you're investing with a long-term horizon in mind. Let's review your fund choices:

SBI Small Cap: Small-cap funds typically carry higher risk but also the potential for higher returns over the long term. Given your investment horizon of 20+ years, investing in small-cap funds can be a sound strategy, as they have the potential to outperform over extended periods.

Quant Small Cap: Similar to SBI Small Cap, Quant Small Cap also falls into the small-cap category. It's essential to understand that small-cap funds can be volatile in the short term but may offer significant growth opportunities over the long run.

Parag Parikh Flexi Cap: Flexi-cap funds provide flexibility to invest across market capitalizations based on market conditions. Parag Parikh Flexi Cap is known for its diversified approach and focus on quality stocks. It's a suitable choice for long-term investors seeking exposure to a mix of large, mid, and small-cap stocks.

Quant Flexi Cap: Flexi-cap funds like Quant Flexi Cap offer flexibility in asset allocation, allowing the fund manager to adapt to changing market conditions. While Quant Flexi Cap may provide growth opportunities, it's essential to monitor its performance and ensure it aligns with your investment objectives.

Overall, your fund selection reflects a diversified approach across small-cap and flexi-cap categories, which can potentially provide robust growth prospects over the long term. However, it's essential to regularly review your investments to ensure they remain aligned with your financial goals and risk tolerance.

Consider consulting with a Certified Financial Planner periodically to reassess your investment strategy and make any necessary adjustments based on changing market dynamics and personal circumstances.

Best Regards,

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