Hope this mail finds you well!

I have SIPs in the following schemes

Fund (Growth)	Amount	Frequency
1. Quant Infrastructure Fund - Direct Plan	₹2,000	Weekly
2. Mirae Asset Emerging Bluechip Fund - Direct Plan	₹2,500	Monthly
3. SBI Banking & Financial Services Fund - Direct Plan	₹1,000	Weekly
4. Tata India Consumer Fund - Direct Plan	₹1,000	Weekly
5. Axis Bluechip Fund - Direct Plan	₹1,000	Weekly
6. Parag Parikh Flexi Cap Fund - Direct Plan	₹1,500	Weekly
7. Franklin India Feeder - Franklin U.S. Opportunities Fund - Direct Plan	₹1,500	Weekly

My goal is to create wealth by doing SIPs for a long time.

Kindly let me know if these schemes are good for the long run or are there are better alternatives to move or rejig in my MF portfolio.

Also, I am thinking for my wife to invest SIPs of 5k monthly each in SBI small-cap or mid-cap fund and quant ELSS fund.

Kindly suggest to me whether these schemes are good or should I select something else.

Ans:

Ans: Please continue with 1, 2 and 3; Axis Bluechip – Growth or UTI Master share -- Growth are better large cap funds.

Ans: You may continue with funds with 4 and 5 star rated.

Midcap: Suitable option considering quality and value for money at present levels is DSP Midcap and Axis Midcap

ELSS: Suitable options considering quality and value for money at present levels are Motilal Oswal Long Term Equity – Growth

Ans: Hello Arun and thanks for writing to me. The funds you investing in are good funds, assuming you are investing for long term wealth creation and you are comfortable with risk.

If you elaborate on your goals, risk appetite and time horizon I may recommend other schemes.

Ans: Your portfolio reflects a proactive approach to wealth creation. Each fund serves a distinct purpose. Let's assess and optimise your investments for long-term growth.

Strengths of Your Current Portfolio
Diverse Investment Strategy: Your funds cover multiple segments like large-cap, mid-cap, and thematic investments.

Long-Term Focus: A consistent SIP approach aligns with compounding benefits and market cycles.

Mid-Cap Exposure: Allocating significant SIPs to mid-cap funds positions your portfolio for growth.

Inclusion of Thematic Funds: Thematic funds add sectoral focus, offering opportunities in specific growth areas.

Areas for Improvement
Concentration in Mid-Cap Funds: A high allocation to mid-cap funds can increase volatility. Diversification is key.

Overlapping Thematic Focus: Funds with sectoral or cyclical focus may overlap in strategy.

Balance Between Growth and Stability: Adding more stability-focused funds can protect the portfolio in downturns.

Fund-Specific Observations
Large and Mid-Cap Fund
This fund balances growth and stability.

Retain this allocation for consistent returns and risk management.

Mid-Cap Funds
Significant allocation to mid-cap funds is growth-oriented.

Review performance and overlap to avoid redundancy.

Consider reallocating some amount to flexi-cap funds for diversification.

Thematic Infrastructure Fund
Sector-focused funds can be volatile and dependent on market cycles.

Limit thematic exposure to 10% of your overall portfolio.

Monitor this fund closely to ensure it aligns with your goals.

Contra and Business Cycle Funds
Both funds are contrarian and cyclical in nature.

Overlapping strategies may lead to concentration risk.

Retain one fund and reallocate the other to a balanced or flexi-cap fund.

Recommendations for Portfolio Optimisation
Enhance Diversification
Add a balanced allocation to large-cap or flexi-cap funds for stability.

Diversification reduces risk and enhances long-term returns.

Monitor and Evaluate Performance
Regularly review fund performance to ensure alignment with goals.

Replace underperforming funds without hesitation.

Adjust Thematic and Sectoral Exposure
Limit thematic funds to a smaller portion of your portfolio.

Sector-focused funds are cyclical and require active monitoring.

Tax-Efficiency
Long-term equity fund gains above Rs. 1.25 lakh attract 12.5% tax.

Short-term gains attract a 20% tax.

Consider tax efficiency while planning redemptions.

Importance of Regular Funds
Direct funds lack personalised guidance and portfolio tracking.

Investing through a Certified Financial Planner ensures regular reviews and professional advice.

Regular funds offer value-added services and align with long-term goals.

Final Insights
Your portfolio is well-structured for long-term growth but needs refinement.

Reduce concentration in mid-cap and thematic funds for better risk management.

Increase exposure to diversified and balanced funds for stability.

Seek professional guidance to optimise performance and adapt to market trends.

Your disciplined SIP approach will reward you over time. Stay consistent and review periodically.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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