I have invested my money in MF and I am continuing for last couple of years but am not seeing good growth so kindly advise me whether I should continue with same funds or switch over to some other fund. The funds are:

1. Aditya Birla Sun Life Equity Advantage Fund – Gr: Monthly 1500

2. DSP Midcap Fund - Reg Gr: Monthly 2000

3. HDFC Taxsaver – Gr: Monthly 1500

Also I have invested in SBI Midcap Fund Gr -- 70K for last 4 years so I would like to know whether I should be keeping in the same fund or change the fund.

Ans: SBI Multi Asset Allocation Fund - Growth is a better option in hybrid multi- asset and Axis Bluechip Fund – Growth is better option in Large-cap

UTI Equity Fund – Growth is a better option in Multi-cap

Sectoral Infra Funds can be avoided; instead diversified equity funds with higher infra exposure can be considered

Rest of the funds are fine.

Ans: All these are ELSS funds and decent ones , can be continues for tax benefit as well as wealth creation

Ans: Creating Wealth with Aggressive Mutual Fund Investments
your commitment to building a substantial corpus for the future is commendable. Let’s assess your current mutual fund portfolio and explore ways to achieve your goal of Rs. 10 crore in the next 10 years.

Evaluating Your Current Portfolio
Current Mutual Fund Investments
Aditya Birla Sun Life Frontline Equity Fund - Growth
Aditya Birla Sun Life MNC Fund - Regular Plan - Growth
Aditya Birla Sun Life Multi-Cap Fund - Regular Plan - Growth
Axis Flexi Cap Fund - Regular Plan - Growth
Axis Focused 25 Fund - Regular Plan - Growth
DSP Small Cap Fund - Regular Plan - Growth
Franklin India Smaller Companies Fund - Growth
HDFC Mid-Cap Opportunities Fund - Growth
ICICI Prudential Equity & Debt Fund - Growth
L&T India Value Fund - Regular Plan - Growth
Mirae Asset Large Cap Fund - Regular Plan - Growth
Samco Flexi Cap Fund - Regular Plan - Growth
ICICI Prudential Value Discovery Fund - Growth
ICICI Prudential NASDAQ 100 Index Fund Direct Growth
Edelweiss Balanced Advantage Fund - Growth
Kotak Small Cap Fund - Growth
DSP Quant Fund - Direct - Growth
Portfolio Analysis
Diversity and Overlap
Your portfolio consists of a mix of large-cap, mid-cap, small-cap, multi-cap, and value funds. While this diversity can reduce risk, there may be significant overlap in holdings, especially in large-cap funds.

Performance Evaluation
Evaluate the performance of each fund over different time periods. Check if they consistently outperform their benchmarks and peers. This analysis helps identify underperforming funds.

Risk Assessment
Given your aggressive growth strategy, higher allocation to mid-cap and small-cap funds is suitable. However, it's crucial to balance this with some large-cap and multi-cap funds for stability.

Recommended Changes
Reducing Overlap
To reduce overlap, consider consolidating similar fund types. For example, choose one or two large-cap funds instead of multiple. This approach streamlines your portfolio.

Focus on Consistent Performers
Retain funds with a strong track record of consistent performance. Replace underperforming funds with those having better potential. This strategy enhances overall portfolio performance.

Suggested Mutual Funds
Large Cap Funds
Large-cap funds invest in well-established companies. They offer stability and moderate growth.

Mid Cap Funds
Mid-cap funds target companies with high growth potential. They balance risk and reward effectively.

Small Cap Funds
Small-cap funds invest in emerging companies. They offer high growth potential but come with higher risk.

Multi Cap Funds
Multi-cap funds diversify across market capitalizations. They offer balanced risk and reward.

Value Funds
Value funds invest in undervalued companies. They provide growth potential through capital appreciation.

Investment Strategy
Monthly Investment Plan
With a monthly investment of Rs. 1 lakh, allocate funds as follows:

Large Cap Funds: Rs. 30,000
Mid Cap Funds: Rs. 30,000
Small Cap Funds: Rs. 20,000
Multi Cap Funds: Rs. 10,000
Value Funds: Rs. 10,000
Annual Review and Rebalancing
Review your portfolio annually. Rebalance to maintain the desired allocation. This approach ensures alignment with your goals and market conditions.

Risks and Benefits of Direct Investing
Disadvantages of Direct Funds
Direct funds may have lower expense ratios. However, they require active management. Without expert guidance, you may miss market opportunities or take on unnecessary risks.

Benefits of Regular Funds
Investing through a Certified Financial Planner offers several benefits. They provide professional management, regular monitoring, and timely adjustments to your portfolio. This approach can lead to better long-term performance.

Conclusion
your dedication to achieving your financial goals is impressive. By optimizing your mutual fund portfolio and investing consistently, you can build significant wealth. Ensure you review and rebalance your investments regularly to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Your commitment to investing and seeking advice shows a strong desire to grow your wealth wisely. Let's review your current portfolio and determine the best course of action.

Current Portfolio Overview

You have invested in four mutual funds since January 2021:

Axis Bluechip Fund
Parag Parikh Flexi Cap Fund
Canara Robeco Blue Chip Equity Fund
Canara Robeco Equity Hybrid Fund
These funds cover large-cap, flexi-cap, and hybrid categories, providing a balanced approach to your investments.

Evaluating Existing Funds

Axis Bluechip Fund: This is a large-cap fund known for stability and steady returns. It's a good choice for conservative investors seeking lower volatility.

Parag Parikh Flexi Cap Fund: This fund invests across market capitalisations and sectors, offering diversification. It's suitable for those seeking moderate to high growth with managed risk.

Canara Robeco Blue Chip Equity Fund: Another large-cap fund, providing similar benefits to Axis Bluechip. It adds stability to your portfolio.

Canara Robeco Equity Hybrid Fund: This fund invests in both equity and debt, offering a balanced approach with reduced risk. It's ideal for those seeking consistent returns with some exposure to equity growth.

Performance Review and Assessment

Review the performance of each fund over the last three years. Compare them to their benchmarks and peer funds. Consider their consistency, risk-adjusted returns, and performance during market volatility.

Making Informed Decisions

Continuing with High Performers

If your funds have shown consistent performance and align with your risk tolerance, continue with them. Long-term investments benefit from compounding, especially if the funds are performing well.

Switching Underperformers

If any fund consistently underperforms its benchmark or peers, consider switching to better-performing funds. Ensure the new funds align with your investment goals and risk profile.

Adding Sectoral and Thematic Funds

Consider adding sectoral or thematic funds for additional growth. These funds can offer higher returns but come with increased risk. Allocate a smaller portion of your portfolio to them.

Regular Review and Rebalancing

Periodic Review

Regularly review your portfolio's performance. This ensures your investments stay aligned with your financial goals and market conditions. Regular reviews help optimise returns and manage risks.

Rebalancing

Rebalancing your portfolio ensures it stays diversified and aligned with your risk tolerance. Adjust your investments based on performance and changes in your financial situation.

Advantages of Actively Managed Funds

Professional Management

Actively managed funds offer professional management, adapting to market changes. This flexibility can result in higher returns compared to passive index funds, which simply track the market.

Market Adaptability

These funds can adjust to economic shifts and opportunities, providing better performance during various market cycles.

Disadvantages of Index Funds

Lack of Flexibility

Index funds merely track market indices and may not perform well during market downturns. They lack the adaptability of actively managed funds, limiting potential returns.

Lower Potential Returns

Since they only aim to match the index, they may miss out on opportunities for higher returns that actively managed funds can capture.

Benefits of Investing Through a Certified Financial Planner

Tailored Advice

A Certified Financial Planner provides tailored advice and professional oversight. This ensures your portfolio aligns with your financial goals and risk tolerance.

Disadvantages of Direct Funds

Lack of Professional Guidance

Direct funds have lower expense ratios but lack professional guidance. Investing through a certified planner ensures informed decision-making and portfolio management.

Creating a Comprehensive Financial Plan

Consider other financial aspects like emergency funds, insurance, and tax planning. A holistic financial plan ensures a secure and well-rounded approach to wealth creation.

Monitoring Market Trends

Stay informed about market trends and economic factors. This knowledge helps you make timely adjustments to your investments, maximising returns and mitigating risks.

Conclusion

Your disciplined investment strategy and diversified portfolio are commendable. With regular review and professional guidance, you can optimise your investments and achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in