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...

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: Your portfolio shows a good mix of mutual fund categories, providing diversification across different market segments. Ensure that the allocation aligns with your risk tolerance as some funds may carry higher risks. Consider periodically reviewing and rebalancing your portfolio to maintain the desired asset allocation. It's essential to monitor the performance of your investments and make adjustments as needed. Consulting a financial advisor can help you optimize your portfolio based on your financial goals and risk profile.

Ans: You are doing many things right at a young age.
Your discipline and clarity deserve appreciation.
Starting early gives you a strong advantage.
Your intent to review shows maturity and responsibility.

» Age and Time Advantage
– You are 36 years old.
– You have around ten years till 2035.
– This is a solid wealth building phase.
– Time is your biggest ally now.
– Compounding works best during this stage.
– Consistency matters more than perfection.

» Goal Clarity and Expectation Review
– Your target is Rs.2 crore by 2035.
– The goal is ambitious but not unrealistic.
– It needs focus and proper portfolio structure.
– The journey must stay smooth and disciplined.
– Returns cannot be chased blindly.
– Risk control is equally important.

» Current Monthly Investment Behaviour
– Your monthly SIP total is meaningful.
– You are investing across market segments.
– Diversification intent is clearly visible.
– However, overlaps are also visible.
– Too many similar funds reduce efficiency.
– Portfolio simplicity improves outcomes.

» Flexi Cap Exposure Assessment
– You hold more than one flexi category fund.
– Flexi funds already offer wide diversification.
– Multiple flexi funds create duplication.
– Overlapping stocks reduce incremental benefit.
– Monitoring becomes harder over time.
– One well-managed option is usually sufficient.

» Mid Cap Exposure Review
– You hold two mid-oriented strategies.
– Mid caps offer strong growth potential.
– They also carry higher volatility risk.
– Too much mid exposure increases swings.
– Emotional discipline becomes difficult during corrections.
– Allocation must match your risk comfort.

» Small Cap Exposure Evaluation
– You have one small cap allocation.
– Small caps boost long-term return potential.
– They are highly volatile in short periods.
– Allocation size matters more than fund count.
– This portion needs patience and long holding.
– Avoid increasing this exposure aggressively.

» Equity and Debt Hybrid Holding
– You hold one equity and debt option.
– Hybrid funds reduce volatility naturally.
– They bring stability during market stress.
– This helps protect behaviour during corrections.
– Such balance is healthy in portfolios.
– However, allocation proportion needs review.

» ELSS Tax Saving Exposure
– You have one tax-saving equity holding.
– ELSS suits long-term disciplined investors.
– Lock-in supports behavioural discipline.
– However, ELSS is pure equity.
– It should align with overall equity allocation.
– Avoid adding multiple ELSS unnecessarily.

» Index Fund Exposure Assessment
– You hold two index-based options.
– Index funds simply follow the market.
– They cannot protect during market extremes.
– There is no downside risk management.
– They offer no flexibility in allocation.
– You remain fully exposed during corrections.

– Index funds mirror market emotions fully.
– They do not avoid overvalued stocks.
– They do not exit risky sectors early.
– They cannot adapt to economic cycles.
– Volatility impact is fully passed to you.

– Actively managed funds adjust allocations.
– Fund managers reduce risk during excess valuations.
– They increase cash or defensive exposure.
– They aim to protect capital during stress.
– Long-term consistency matters more than cost.

– Behavioural comfort is critical for wealth creation.
– Active strategies support investor discipline better.
– Index exposure should not dominate portfolios.
– Especially for goal-based investing.

» Over-Diversification Concern
– You currently hold eight equity-oriented funds.
– Many belong to similar categories.
– This causes unnecessary overlap.
– Portfolio tracking becomes confusing.
– Rebalancing becomes inefficient.
– Returns may average out lower.

» Need for Portfolio Rationalisation
– Reducing fund count improves clarity.
– Fewer funds improve focus.
– Monitoring becomes simpler.
– Behavioural discipline improves significantly.
– Rebalancing becomes effective.
– Goal alignment becomes clearer.

» Suggested Exit and Retain Strategy
– Retain limited flexi exposure.
– Retain one strong mid-cap exposure.
– Retain controlled small-cap exposure.
– Retain one hybrid allocation.
– Reduce index fund exposure gradually.
– Avoid abrupt exits during market volatility.

» Annual Rs.1 Lakh Investment Guidance
– Annual investments should support long-term goals.
– Lump sum investing needs timing discipline.
– Market valuations must be respected.
– Phased deployment reduces timing risk.
– Annual amount should strengthen core allocation.

– Prefer diversified active equity strategy.
– Focus on long-term wealth creation.
– Avoid thematic or narrow strategies.
– Stability matters more for lump sums.
– This amount should not chase trends.

» Asset Allocation Perspective
– Equity should remain the primary growth driver.
– Debt supports stability and risk control.
– Hybrid strategies offer automatic balancing.
– Allocation must match your emotional comfort.
– Avoid extreme aggressive positioning.

» Risk Management and Behaviour Control
– Market corrections are inevitable.
– Your portfolio must help you stay invested.
– Excess volatility causes panic exits.
– Panic destroys long-term wealth.
– Structure should protect behaviour.

» Taxation Awareness
– Equity gains attract capital gains tax.
– Long-term equity gains above Rs.1.25 lakh are taxable.
– Short-term equity gains attract higher tax.
– Tax should not drive investment decisions.
– Post-tax returns matter more.

» Goal Feasibility Assessment
– Rs.2 crore target needs sustained discipline.
– SIP continuity is critical.
– Annual increments will improve probability.
– Portfolio efficiency improves success chances.
– Behavioural consistency is the key driver.

» Monitoring and Review Discipline
– Annual reviews are sufficient.
– Avoid frequent changes.
– Review allocation, not returns.
– Rebalance when deviations arise.
– Avoid reacting to market noise.

» Emergency and Protection Check
– Ensure adequate emergency reserve exists.
– Six months expenses is ideal.
– Health insurance should be sufficient.
– Term insurance must cover liabilities.
– Investments work best with protection support.

» Lifestyle and Cash Flow Alignment
– Investments must not strain cash flow.
– Lifestyle balance is important.
– Avoid over-commitment to SIPs.
– Flexibility reduces stress.
– Sustainable plans succeed longer.

» Behavioural Insights
– Wealth creation is emotional journey.
– Simplicity supports discipline.
– Over-monitoring creates anxiety.
– Trust the process.
– Stay patient during dull phases.

» Finally
– You have started well.
– Your age gives strong advantage.
– Portfolio needs simplification.
– Index exposure should be reduced gradually.
– Active management suits your goal better.
– Annual investments must support core structure.
– Rs.2 crore target is achievable with discipline.
– Stay consistent and avoid frequent changes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment