I am investing in mutual funds for last 5 years and currently have SIP running as below:

• HDFC Hybrid Equity Fund - Rs 5000
• UTI Mastershare - Rs 4000
• UTI Equity Fund - Rs 2000
• UTI Dividend Yield Fund - Rs 2000

All under 'Growth' option. I can put additional Rs 4000 pm in SIP. Please advise options. My age is 50 years so horizon of 5 - 7 years is fine.

Name of the Fund	Category	RankMF Star Rating
Rakesh Banga
·         HDFC Hybrid Equity Fund - Rs 5000	Hybrid - Aggressive Hybrid Fund	5
·         UTI Mastershare - Rs 4000	Equity - Large Cap Fund	4
·         UTI Equity Fund - Rs 2000	Equity - Multi Cap Fund	5
·         UTI Dividend Yield Fund - Rs 2000	Equity - Dividend Yield Fund	5

Ans: You may continue with 4 & 5-Star rated ones and rest can be relooked. Avoid Equity - Sectoral Funds 

Midcaps: Suitable options considering quality and value for money are:

• Motilal Oswal Midcap 30
• DSP Midcap
• Kotak Emerging Equity Fund

Ans:

Midcaps: Suitable options considering quality and value for money are:

• Motilal Oswal Midcap 30
• DSP Midcap
• Kotak Emerging Equity Fund

Large Caps: 

• LIC MF Large Cap Fund – Growth
• Mirae Asset Large Cap Fund – Growth

Small Caps:

• Kotak Small Cap
• Axis Small Cap 

Ans: These are good funds, please continue.

 

Ans: It's clear you've taken a proactive approach to investing, and you've built a diverse portfolio across various mutual funds. Let's assess your current holdings and provide some guidance.

Your SIPs in HDFC Defence, HDFC Multicap, HDFC Small Cap, Nippon Small Cap, and SBI Large and Mid Cap demonstrate a blend of large, mid, and small-cap exposure, which is commendable for diversification.

However, having multiple funds within the same fund house, such as HDFC, may lead to overlapping holdings and concentration risk. Consider diversifying across different fund houses to spread risk more effectively.

Your lump sum investments in HDFC Balanced Advantage, HDFC Focused 30, HDFC Manufacturing, SBI Contra, SBI PSU, and SBI Energy Opportunity Funds provide additional diversification across different investment themes and strategies.

While lump sum investments can be beneficial, especially during market downturns, it's essential to review your investment rationale for each fund and ensure they align with your long-term financial goals and risk tolerance.

Given the size of your lump sum investments, consider consulting with a Certified Financial Planner to assess if your portfolio is appropriately diversified and if any adjustments are needed to optimize returns while managing risk.

Additionally, periodically review your portfolio's performance and make necessary adjustments to stay aligned with your financial objectives and market conditions.

In conclusion, while your current investments showcase a diverse portfolio, consider diversifying across fund houses and regularly reviewing your holdings to ensure they remain aligned with your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in