Hello Sir. I have SIPs of 5000/- each in Quant Active, Canara Bluechip, Tata Digital since 2 years for 10 years horizon. I stopped Axis Midcap & added Parag Parikh Flexicap of 5000/-. Kindly advise for these funds.Selected mfs in such a way that 3 havig small & mid components & one for stability. Also, I have VPF & PF of Rs. 12000/- pm. As per me like this I am making balance between debt & equity. Following funds ahve been stopped Axis Bluechip & Mirae Tax saver within one year during review. Kindly advise me for any changes or to continue or add any small, mid cap, index, hybrid.....

Ans: Hello Garg pankaj kumar. My recommendation would be to switch to better schemes of the same AMC for ICICI & UTI.

ITI & MAHINDRA MANULIFE should be redeemed and reinvested in better schemes of different AMCs.

Ans: Funds are good and the best part is your goal is for 15yrs which is a good sign of investing.
with 18% of overall returns with these funds your corpus at the end would be Rs. 7,42,41,062/-
with 20% of overall returns with these funds your corpus at the end would be Rs. 8,92,08,227/-
with 22% of overall returns with these funds your corpus at the end would be Rs. 10,72,60,404/-
so watch accordingly on the returns and track funds.

Disclaimer: Investments in securities are subject to market RISKS. Read all the related documents carefully before investing. Please consult your appointed/paid financial adviser before taking any decision. The securities quoted are for illustration only and are not recommendatory. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Ans: Your portfolio is well diversified across various categories and designed for long-term horizon.

Currently, you have three mid-cap funds in your portfolio i.e. Mirae Asset Mid Cap Fund, Kotak Emerging Equity Fund, and Motilal Oswal Mid Cap Fund.

Motilal Oswal Mid Cap Fund is currently investing only in 30 stocks which makes it focused in nature. The market surge has helped the fund achieve strong returns over the last year, but these returns have not been steady and have not had a particularly strong track record. Thus, we advise you to discontinue making investments in this fund.

You have investments in two Mirae AMC funds in your portfolio. We advise you to diversify your investments among different AMCs to lower the risk of concentration and to take advantage of the various investing strategies that AMCs follow.

We suggest you to continue to invest in Kotak Emerging Equity Fund since the fund has a good track record, past performance and it is well diversified as compared to its peers.

Ans: Investing Rs. 5.5 lakhs monthly across 11 funds is impressive. Your aggressive approach matches your 10-15 years horizon. Let’s analyse your portfolio and suggest improvements.

Strengths of Your Current Portfolio
Well-Diversified Across Categories: Your funds span large-cap, mid-cap, small-cap, and flexi-cap categories.

Aligned with Aggressive Strategy: The portfolio leans towards mid-cap and small-cap funds. These suit long-term aggressive investors.

Consistent Contributions: High SIP commitment ensures disciplined wealth creation over time.

Areas of Concern
Over-Diversification: Investing in 11 funds dilutes potential returns. Similar categories may overlap.

Direct Funds Approach: Direct plans lack professional guidance for portfolio review and rebalancing.

Small-Cap Heavy Allocation: Multiple small-cap funds increase risk in volatile markets.

Multiple Multicap Funds: Holding three multicap funds may result in duplication of stocks.

Suggestions for Portfolio Optimisation
Limit the Number of Funds
Reduce the number of funds to 5-7. This avoids over-diversification.

Retain one strong performer from each category: large-cap, mid-cap, small-cap, flexi-cap, and multicap.

Avoid Category Duplication
Retain only one fund each in small-cap, mid-cap, and multicap categories.

Choose funds with consistent past performance and fund house credibility.

Focus on Actively Managed Funds Through MFD
Direct funds lack professional advice.

Investing through an MFD with a Certified Financial Planner ensures expert guidance.

MFDs monitor market conditions and align your portfolio for optimal returns.

Reassess Risk Allocation
Small-cap funds should be limited to 10-15% of your portfolio.

Mid-cap funds can constitute 25-30% for higher growth potential.

Allocate 25-30% to large-cap or flexi-cap funds for stability.

Periodic Review and Rebalancing
Review your portfolio every six months or annually.

Rebalance to maintain your desired asset allocation.

Track fund performance and exit underperformers promptly.

Tax Implications to Consider
Long-term capital gains above Rs. 1.25 lakh attract 12.5% tax.

Short-term gains are taxed at 20%.

Diversifying across equity and hybrid funds can optimise tax outflow.

Benefits of Reduced Fund Count
Simplified portfolio management.

Improved tracking of individual fund performance.

Higher potential for compounding due to concentrated allocation.

Recommended Allocation for Aggressive Investors
Large-Cap/Flexi-Cap Funds: Stability with market participation.

Mid-Cap Funds: Balance between risk and growth.

Small-Cap Funds: High-risk, high-reward potential.

Multicap Funds: Flexible allocation across market capitalisations.

Final Insights
Your portfolio reflects strong financial discipline and long-term vision. However, over-diversification dilutes growth. Streamline your funds for focused performance. Professional guidance ensures optimal fund selection and timely rebalancing. Stick to your SIPs to achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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