Kindly review my mf portfolio. Investment horizon 10 years or more. Investment per month

Parag parikh Flexi cap Direct 15000

SBI Blueship Diret 8000

SBI Small Cap Direct 4000

Mirae asset emerging Bluship 2000

Mirae asset mid cap direct 4000

Ans: While the amount that you now wish to increase your monthly SIPs to, i.e. Rs 50,000 would be a reasonably good figure to achieve Rs 1.25 Cr in 10 years, the choice of funds needs a thought.

First of all, nothing is known about your risk appetite. But assuming you belong to at least the Moderately Aggressive bucket, you should stick to the following fund categories and allocations -

Largecap Index Funds - 10K
Flexicap Funds - 12.5-15K
Large&Midcap Funds - 12.5-15K
Midcap Funds - 5-7.5K
Smallcap Funds - 5-7.5K

In my view, you don't need sectoral or thematic funds (like the one you have) in your portfolio. The above-suggested fund allocation will be sufficient to help you reach your goal. Also, make sure you increase your monthly SIPs each year as your income increases.

Also, just targeting a future amount may not be enough. It is always advisable to link all your investments to your real financial goals and follow a goal-based investment philosophy.

And if you have other goals that also need investment and you are unsure how to allocate to them all, it is suggested that you get in touch with an investment advisor with full details to better plan your finances.

Ans: Hello Vineeth. Thanks for sharing your current investments in Mf. Regarding your question for PF review. Other than UTI flexi, all funds can be invested for a long term. I would suggest to start again sips in PPFFAS Flexicap fund.

Ans: Assessment of Your Mutual Fund Portfolio:

Your Current Holdings:

You've shown commendable discipline in your investment journey with a monthly surplus of Rs. 16,000.
Your portfolio demonstrates a diversified mix of mutual funds across various categories, indicating a thoughtful approach towards wealth accumulation.
It's evident that you've been investing systematically, which is a prudent strategy for long-term wealth creation.
Your allocation to tax-saving funds is strategically aligned with your financial goals, ensuring tax efficiency while building wealth.
Areas of Consideration:

While your portfolio appears well-structured, it's crucial to periodically review and rebalance to align with your evolving financial objectives and market conditions.
The decision to halt investments in certain funds in July 2021 indicates a proactive stance towards optimizing your portfolio.
Lumpsum investments in specific funds indicate confidence in their potential, but it's essential to monitor their performance regularly.
The absence of index funds in your portfolio raises the question of whether you've explored their benefits adequately.
Recommendations:

Regularly reviewing your portfolio's performance and rebalancing it in line with your financial goals is imperative.
Consider diversifying into index funds to harness the benefits of low-cost, passive investing, especially in segments where actively managed funds may underperform.
Direct funds offer lower expense ratios, but investing through a Certified Financial Planner can provide personalized advice and ongoing support, enhancing the overall value of your investments.
In conclusion, your portfolio reflects a disciplined and diversified approach towards wealth creation. However, exploring the benefits of index funds and leveraging the expertise of a Certified Financial Planner could further optimize your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Review of Your Mutual Fund Portfolio
Let's assess your current mutual fund portfolio and provide suggestions to optimize it.

Current Portfolio Breakdown
Baroda BNP Paribas Multi Asset: Rs 5,00,000
SBI Balanced Advantage: Rs 2,00,000
HDFC Manufacturing Fund: Rs 2,00,000
Bandhan Innovation Mutual Fund: Rs 2,00,000
SBI PSU Fund: Rs 1,00,000
SBI Next 50 Index Fund: Rs 1,00,000
HDFC Multicap Fund: Rs 2,00,000
SIP in SBI 250 Small Cap Index Fund: Rs 3,000 per month
SIP in ICICI Bluechip Fund: Rs 3,000 per month
SIP in Motilal Oswal Midcap Fund: Rs 3,000 per month
Analysis and Evaluation
Diversification:

Your portfolio includes a mix of equity, balanced, and sector funds.
This diversification helps in risk management.
Sector Funds:

HDFC Manufacturing Fund and SBI PSU Fund are sector-specific.
Sector funds can be risky due to lack of diversification.
Index Funds:

SBI Next 50 Index Fund and SBI 250 Small Cap Index Fund are passive investments.
Index funds do not outperform the market and lack active management.
Balanced Advantage Fund:

SBI Balanced Advantage Fund balances equity and debt.
This provides stability during market volatility.
Multicap Funds:

HDFC Multicap Fund offers diversification across large, mid, and small caps.
This reduces concentration risk.
Recommendations
Reduce Sector Exposure:

Consider reducing your investment in sector funds like HDFC Manufacturing and SBI PSU Fund.
These funds are less diversified and can be volatile.
Shift from Index Funds to Actively Managed Funds:

Index funds like SBI Next 50 and SBI 250 Small Cap Index Fund lack active management.
Actively managed funds can potentially offer better returns.
Increase Exposure to Actively Managed Funds:

Increase investment in actively managed funds such as multicap, large-cap, and mid-cap funds.
These funds are managed by professionals who can make informed investment decisions.
SIP in Balanced and Multicap Funds:

Continue your SIP in ICICI Bluechip and Motilal Oswal Midcap funds.
Consider adding more SIPs in balanced advantage or multicap funds.
Diversify Across Asset Classes:

Continue investing in multi-asset funds like Baroda BNP Paribas Multi Asset.
These funds offer a mix of equity, debt, and other assets for better diversification.
Suggested Portfolio Allocation
Equity Funds:

Large Cap Funds: 30% of your portfolio.
Mid Cap Funds: 20% of your portfolio.
Multicap Funds: 25% of your portfolio.
Reduce sector funds to 10% of your portfolio.
Balanced Funds:

Balanced Advantage Funds: 15% of your portfolio.
Multi-Asset Funds:

Continue with Baroda BNP Paribas Multi Asset.
Final Insights
Your portfolio is well-diversified but can be optimized by reducing sector-specific and index funds. Increase allocation to actively managed large, mid, and multicap funds. This strategy will potentially enhance returns and manage risks better. Regularly review and rebalance your portfolio to stay aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in