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Ramalingam Kalirajan |7159 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Apr 12, 2024Hindi

Hello, I want to review my portfolio.Also want to add 3000 more sip should I add new fund or increase in existing funds. Current portfolio. Parag pareg flexi cap-7500 Hdfc index sensex plan-7500 Nippon small cap-4500 Tata small cap-2500 Kotak emerging equity -7500 Investment horizon -15 years

Ans: Let's take a look at your portfolio and see how it aligns with your 15-year investment horizon.

Overall Assessment:

Diversification: You have a good mix of funds across market capitalizations (Flexi-cap, Large-cap, Mid-cap, Small-cap). This helps spread risk.

Actively Managed vs. Passively Managed: You have a mix of actively managed funds (Parag Parekh Flexi Cap, Nippon Small Cap, Tata Small Cap, Kotak Emerging Equity) and a passively managed index fund (HDFC Index Sensex Plan).

Actively managed funds: These involve higher fees but have the potential for higher returns than the market.

Index Funds: Aim to replicate a market index and offer lower fees but typically match market returns.

Considering Your 15-Year Horizon:

Long-Term Focus: A 15-year timeframe allows you to ride out market fluctuations and potentially benefit from the power of compounding.

Higher Risk Tolerance: Since you're comfortable with actively managed funds, you can potentially handle some risk for higher returns.

Optimizing Your SIP Strategy (?3000):

Increase Existing Funds: Consider increasing your SIP amounts proportionately across your existing actively managed funds to maintain diversification and benefit from their growth potential.

Adding a New Fund (Optional): If you want to add another fund, look for a Large-cap or Flexi-cap fund to further diversify and provide stability. Actively managed funds come with higher fees compared to passively managed funds.

Remember:

Review Regularly: Periodically review your portfolio (at least annually) to ensure it aligns with your goals and risk tolerance.

Professional Guidance: A Certified Financial Planner (CFP) can offer personalized advice based on your risk profile, goals, and overall financial situation.

You've built a good foundation! By potentially increasing your SIPs in existing funds or strategically adding a new fund, you can aim to grow your corpus over the next 15 years. A CFP can help you fine-tune your strategy for long-term success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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