Hello Sir, I’m a novice investor into MFs. I’ve started investing into a few elements since 2024.
1. EPF - 12% of basic + da
2. PPF - 1.5L every year
3. NPS Tier 1 - 10% of basic + da
4. Mutual funds of 15k per month into multiple funds as below (I don’t have much knowledge but wanted to start with something and see how they perform and take action after 2-3 years). Here they are:
a. ICICI prudential retirement fund pure equity plan - 5k (xirr 13.75%)
b. Quant multi asset allocation - 1k (xirr 18.27%)
c. Groww banking and financial -1k (14.72%)
d. Aditya Birla sun life medium term - 1k (11.65%)
e. ICICI prudential commodities - 1k (11.39%)
f. Aditya Birla sun life psu equity - 1k (8.07%)
g. ICICI prudential equity and debt - 1k (7.63%)
h. Bank of India short term income - 1k (7.47%)
I. ICICI prudential Bharat 22 fof - 1k (5.64%)
J. HDFC balanced advantage - 1k (4.79%)
K. HDFC retirement savings equity - 1k (2.09%)
I feel like the time to revisit my portfolio and make adjustments. My goal is long term wealth creation (15-20 years) and I can increase my contribution from 15k to 30k every month moving forward. What are some of the funds I should pause or withdraw and reinvest? Could you please share guidance? TIA.
Ans: It is good that you started investing early instead of waiting to become an expert. Many people spend years learning but never start. You have already built a strong foundation through EPF, PPF, NPS and mutual funds.
» What I Like In Your Current Approach
– You are investing regularly.
– You have a long investment horizon of 15-20 years.
– You are willing to increase your SIP from Rs 15,000 to Rs 30,000 per month.
– You are already contributing towards retirement through EPF, PPF and NPS.
– These factors are more important than finding the perfect fund.
» The Main Issue In Your Portfolio
– You currently have 11 mutual funds for a monthly SIP of only Rs 15,000.
– This means several funds are receiving just Rs 1,000 per month.
– Such a structure creates complexity without necessarily improving returns.
– Portfolio diversification is good. Over-diversification is not.
– At present, you have exposure to multiple themes, sectors, debt categories and retirement-oriented funds.
– For long-term wealth creation, simplicity often works better.
» Funds That Need Review
– Sector-specific funds such as banking, financial services, commodities and PSU-oriented funds are cyclical in nature.
– These sectors can perform very well in certain years and remain weak for long periods.
– For a novice investor, having large exposure to sectoral themes may not be necessary.
– Retirement-specific funds can be useful, but since you already have EPF, PPF and NPS, you should evaluate whether additional retirement-focused funds are adding meaningful value.
– Multiple debt-oriented funds may also be unnecessary if your primary goal is long-term wealth creation.
» What A Long-Term Portfolio Should Focus On
– Core allocation should generally be towards diversified actively managed equity funds.
– Exposure across large, mid and flexi-style strategies can provide a good balance of growth and risk.
– A small allocation towards asset allocation or balanced strategies can provide stability.
– Too many thematic and sector funds can make portfolio management difficult.
» About Increasing SIP To Rs 30,000
– This is where the real wealth creation opportunity lies.
– Instead of spreading Rs 30,000 across 10-12 funds, consider concentrating the SIP into a smaller number of well-managed diversified funds.
– Higher SIP amounts into fewer quality funds often make monitoring easier.
– It also helps you understand what is actually driving portfolio performance.
» Should You Withdraw Existing Investments?
– I would not recommend redeeming solely based on 1-year or 2-year performance numbers.
– First review:
Fund category overlap.
Tax implications.
Exit loads, if any.
Overall portfolio allocation.
– Then gradually streamline the portfolio.
– Avoid making sudden changes based only on recent returns.
» Tax Considerations
– If you redeem equity mutual funds, long-term capital gains above Rs 1.25 lakh in a financial year are taxed at 12.5%.
– Short-term capital gains are taxed at 20%.
– Therefore, any restructuring should be done carefully after evaluating tax impact.
» Direct Fund Vs Regular Fund
– Since you appear to be managing the portfolio yourself, one point worth considering is that direct funds require ongoing monitoring, rebalancing and category selection by the investor.
– Many investors start with enthusiasm but later find portfolio reviews difficult as the number of funds increases.
– Investing through regular funds with the support of an AMFI-registered MFD can provide portfolio review, asset allocation guidance and behavioural support during market volatility.
– Long-term success is often driven by disciplined portfolio management rather than simply selecting funds.
» 360 Degree View
– Continue EPF contributions.
– Continue PPF contributions.
– Continue NPS contributions.
– Increase SIPs gradually every year.
– Maintain an emergency fund covering at least 6-12 months of expenses.
– Ensure adequate health insurance and term insurance coverage.
– Review the portfolio annually rather than reacting to short-term performance.
– Focus on asset allocation and discipline more than fund rankings.
» Finally
– Your biggest strength is not the current fund selection. It is your long investment horizon and willingness to double your monthly investment.
– I would simplify the portfolio by reducing unnecessary overlap and reducing dependence on sector-specific funds.
– For a 15-20 year wealth creation goal, a portfolio centred around a few diversified actively managed equity funds is generally more effective than maintaining 11 different schemes.
– Before suggesting exactly which funds to continue and which to exit, please share your age, annual income, tax slab and whether these investments are for retirement, children's education or general wealth creation. That will help provide a more precise recommendation.
Best Regards,
K. Ramalingam, MBA, CFP,
AMFI-Registered MFD – ARN 4188
www.holisticinvestment.in
https://www.linkedin.com/in/ramalingamcfp/
Asked on - Jul 06, 2026 | Answered on Jul 07, 2026
Thank you for your guidance, Sir. I’m 33, single; getting married in Mar 2027. Marriage expenses are saved separately. Annual CTC is 23LPA and on New tax regime. For the next 2 years, I can only invest 30k in MFs, post which I can increase to 60-70k. Primary goal at the moment is wealth creation. Please guide further. Thank you.
Ans: It is good to see that you have already separated your marriage corpus. That protects your long-term investments from being disturbed.
» My Assessment
– At age 33, with a 15-20+ year horizon, you have time on your side.
– Your income level is healthy and the ability to increase SIPs to Rs 60,000-70,000 after 2 years can make a huge difference to wealth creation.
– Since your primary goal is wealth creation, your portfolio can be more equity-oriented.
» What I Would Do
– Gradually stop fresh SIPs into sector-specific funds such as banking, commodities and PSU-focused categories.
– Stop adding to multiple debt funds since you already have EPF, PPF and NPS providing stability.
– Consolidate future SIPs into 3-4 diversified actively managed equity funds across flexi-cap, large & mid-cap and multi-cap categories.
– Keep one asset allocation fund only if you want some stability.
» SIP Strategy
– Continue Rs 30,000 SIP for the next 2 years.
– Once married and cash flows stabilise, increase SIPs aggressively to Rs 60,000-70,000.
– Every salary hike should partly go towards SIP increases.
» Finally
– At 33, your biggest wealth-building tool is not fund selection but increasing investments over time.
– Simplify the portfolio, focus on diversified actively managed equity funds and stay invested for the long term.
– If you maintain discipline, your financial position at 45 can look dramatically different from where it is today.
Best Regards,
K. Ramalingam, MBA, CFP,
AMFI-Registered MFD – ARN 4188
www.holisticinvestment.in
https://www.linkedin.com/in/ramalingamcfp/
