Hello.. A request to please review my portfolio. My current portfolio value is 88 lacs. I have being investing monthly in the following SIP's. Mirae asset large cap (Gr) -8000, Kotak Emerging equity (Gr) - 5000 Invesco India Multicap (Gr) -15000, HDFC Flexi Cap (Gr) -3000, SBi Flexi Cap (Gr) - 5000, Canara Robeco Flexi cap - 5000, DSP Midcap (Gr) - 3000, dsp tOP 100 Equity - 1000, Nippon India Low duration (Gr) - 3000, Nippon India Multi cap (Gr) - 10000, Nippon India Tax saver - 1000. I plan to retire in the next 7 years. Would be great if you could give me an approximate valuation of my portfolio at that point of time. It would help me with my retirement planning

Ans:

Ans: You have allocation in good funds, however, there are too many funds in the Smallcap category; kindly understand there can be significant overlaps in the funds owing to limitation in the investible universe.
Since you're already following step-up SIP route, you can go for a Flexicap Fund, a Smallcap fund and a Hybrid fund to balance your portfolio.

Ans: Reviewing Investment Portfolio and Suggestions

As a 37-year-old investor with a monthly salary of Rs. 1.7 lakhs, it's commendable that you are investing in SIPs to build wealth for the future. Let's review your current portfolio and provide suggestions for optimization.

Assessment of Current Portfolio

Your portfolio consists of investments in four mutual funds:

Parag Parikh Flexi Cap Fund (Rs. 4,000 per month)
HDFC Index S&P BSE Sensex Fund (Rs. 2,500 per month)
Axis Small Cap Fund (Rs. 2,000 per month)
Quant Small Cap Fund (Rs. 2,000 per month)
Analysis and Suggestions

Parag Parikh Flexi Cap Fund: This fund follows a flexible investment strategy, investing across large-cap, mid-cap, and small-cap stocks. It has a track record of delivering consistent returns over the long term. Given its diversified approach and focus on quality stocks, it's a suitable choice for your portfolio.

HDFC Index S&P BSE Sensex Fund: Investing in an index fund tracking the S&P BSE Sensex provides exposure to India's top 30 blue-chip companies. While index funds offer low-cost exposure to the market, it's essential to diversify beyond large-cap stocks for optimal risk-adjusted returns. Consider reallocating a portion of your investment from this fund to diversify across different market segments.

Axis Small Cap Fund: Small-cap funds have the potential for high growth but come with higher volatility. As you're already investing in two small-cap funds (Axis Small Cap and Quant Small Cap), it may be prudent to reassess your exposure to this segment. Evaluate your risk tolerance and consider consolidating your small-cap exposure into a single fund to simplify your portfolio.

Quant Small Cap Fund: Similar to the Axis Small Cap Fund, the Quant Small Cap Fund focuses on small-cap companies. While diversification is beneficial, having two small-cap funds may increase portfolio overlap and concentration risk. Consider consolidating your small-cap exposure into one fund with a strong track record and consistent performance.

Recommended Action Plan

Reallocate Funds: Consider reallocating a portion of your investment from HDFC Index S&P BSE Sensex Fund to diversify across other market segments such as mid-cap or thematic funds.
Consolidate Small-Cap Exposure: Evaluate the performance and suitability of Axis Small Cap Fund and Quant Small Cap Fund. Consider consolidating your small-cap exposure into a single fund with a proven track record and lower expense ratio.
Regular Review: Monitor the performance of your portfolio regularly and make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.
By optimizing your investment portfolio based on the suggestions provided, you can enhance diversification, manage risk, and maximize returns over the long term.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's fantastic that you're already thinking about retirement at 45. Life has a way of whizzing by, doesn't it? Having a 10-year plan towards a ?1 crore corpus for early retirement at 55 shows real foresight.

Now, looking at your portfolio with a mix of large, mid, and small-cap funds, it's clear you've diversified across market capitalizations. That's a smart approach! But with a goal ten years down the line, have you considered how much risk you're comfortable with? Remember, the ride might get bumpy closer to retirement, and you might want to consider a chat with a Certified Financial Planner (CFP). They can help you fine-tune your asset allocation to balance growth potential with stability as you near your retirement mark. Think of it like planning a trek to the Himalayas – you want the right gear for every stage of the climb!