Im investing 20k every month - 5k in quant active fund, 5k in pp flexi cap fund, 3.5k in kotak equity hybrid, 3.5k in icici multi asset, 3k in icici regular savings fund Are the fund category selections good? Is my portfolio well diversified? Does it need any change? (My age is 28 and i have high risk appetite, goal is overall wealth creation)

Ans: Hello, Abhishek. Overall, your portfolio reports sound very promising. I must say that you have conducted thorough research on the market. Your current sip allocation is well aligned with market. Mirae Asset NYSE FANG+ ETF has major allocation in Global equity and its sector specific, you may be conservative while moving forward.

Ans: Hi Jaskaran. Your current investment portfolio shows that 80% of your investments are in one AMC i.e. HDFC. Hence, I would suggest that AMC-wise diversification is required in your portfolio. In addition, I recommend you to add large & mid , and small cap categories in your future investments with proper allocations.

Ans: Evaluating Your Mutual Fund Portfolio
At 32, investing in mutual funds with a disciplined approach is a commendable step towards building wealth for the future. Let's evaluate your current portfolio to ensure it aligns with your financial goals and risk tolerance.

Portfolio Composition
UTI Index Equity Fund:

Provides exposure to a diversified portfolio of large-cap stocks, tracking the performance of the underlying index. Offers stability and long-term growth potential.
Parag Parikh Flexi Fund:

A well-managed fund with a flexible investment approach across equity and debt securities. Known for its focus on quality stocks and global diversification.
Quant Midcap Fund:

Invests primarily in mid-cap companies with growth potential. Offers the opportunity for higher returns but comes with higher volatility.
Tata Small Cap Fund and Nippon Small Cap Fund:

Small-cap funds focus on companies with small market capitalization, offering high growth potential. However, they are more volatile and suitable for investors with a higher risk appetite.
Quant Flexi Cap and Axis Small Cap Fund:

Flexi-cap and small-cap funds provide flexibility to invest across market capitalizations. Ensure you're comfortable with the risk associated with small-cap investments.
Quant Infrastructure Fund (Lump Sum):

Infrastructure funds invest in companies involved in infrastructure development, such as construction, energy, and transportation. Consider the long-term prospects of the infrastructure sector and the fund's performance.
Assessing Portfolio Diversification
Your portfolio includes a mix of large-cap, mid-cap, and small-cap funds, offering diversification across market capitalizations. However, it's essential to review the overlap between funds to avoid concentration risk and ensure adequate diversification.

Portfolio Review and Optimization
Risk Assessment:

Evaluate your risk tolerance and investment horizon to determine if the current allocation aligns with your financial goals.
Performance Review:

Monitor the performance of individual funds and compare them against their benchmarks and peer group. Consider making adjustments if any funds consistently underperform.
Asset Allocation:

Ensure your asset allocation is balanced and in line with your risk profile. Consider rebalancing if necessary to maintain the desired mix of equity and debt investments.
Professional Advice:

Consider consulting with a Certified Financial Planner to review your portfolio and receive personalized recommendations based on your financial situation and goals.
Conclusion
Your mutual fund portfolio shows a diversified mix of investments across market capitalizations and sectors. Regularly review and assess your portfolio's performance to ensure it remains aligned with your financial objectives. Remember, investing is a long-term journey, and periodic adjustments may be necessary to navigate market fluctuations and achieve your wealth accumulation goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Evaluating Your Current Portfolio
Axis Midcap Fund: Rs 2.5K per month
Quant Small Cap Fund: Rs 5K per month
HDFC Balanced Advantage Fund: Rs 2.5K per month
Kotak Focused Equity Fund: Rs 2.5K per month
Mirae Asset Large and Mid Cap Fund: Rs 5K per month
Analysis
Diversification: Your portfolio is well-diversified across various market capitalizations. You have exposure to midcap, small cap, large and midcap, and a balanced fund.

Risk and Return: Small and midcap funds tend to be more volatile but can offer higher returns over the long term. Balanced funds provide stability and moderate growth. Focused funds can deliver high returns but come with higher risks due to concentrated investments.

Balanced Allocation: You have a good mix of aggressive (small and midcap) and balanced (balanced advantage, focused equity) funds.

Suggestions for Increasing Your Investment
You plan to increase your monthly investment from Rs 15K to Rs 25K. Here's how you can adjust your portfolio:

Additional Investments
Continue with Current Funds:
Axis Midcap Fund: Increase to Rs 4K
Quant Small Cap Fund: Increase to Rs 7K
HDFC Balanced Advantage Fund: Increase to Rs 4K
Kotak Focused Equity Fund: Increase to Rs 4K
Mirae Asset Large and Mid Cap Fund: Increase to Rs 6K
Adding New Funds
Introduce New Funds for Better Diversification:
Large Cap Fund: Add Rs 5K per month. Large cap funds provide stability and consistent returns.
International Fund: Add Rs 5K per month. These funds offer exposure to global markets and help diversify geographically.
Revised Portfolio Allocation
Axis Midcap Fund: Rs 4K per month
Quant Small Cap Fund: Rs 7K per month
HDFC Balanced Advantage Fund: Rs 4K per month
Kotak Focused Equity Fund: Rs 4K per month
Mirae Asset Large and Mid Cap Fund: Rs 6K per month
New Large Cap Fund: Rs 5K per month
New International Fund: Rs 5K per month
Benefits of the Revised Portfolio
Balanced Growth: Increased allocation to midcap and small cap funds enhances growth potential.

Stability: Higher allocation to balanced advantage and large cap funds provides stability.

Global Diversification: Adding an international fund reduces country-specific risks and leverages global opportunities.

Investment Strategy
SIP Continuation: Continue with SIPs for disciplined investing and rupee cost averaging.

Regular Review: Monitor your portfolio every six months to ensure it aligns with your goals.

Rebalance if Necessary: Adjust allocations based on market conditions and life changes.

Additional Tips
Emergency Fund: Maintain an emergency fund equivalent to 6 months' expenses in a liquid fund.

Insurance: Ensure you have adequate life and health insurance coverage.

Final Insights
Your current portfolio is well-structured. With the increased investment and the introduction of new funds, you can achieve better diversification and growth. Regular monitoring and rebalancing will ensure you stay on track to meet your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in