Age: 29 
I am a salaried working professional. 

I hold the following ELSS funds in my portfolio for SIP.

a. AXIS LONG TERM EQUITY FUND - GROWTH
b. DSP TAX SAVER FUND - GROWTH
c. FRANKLIN INDIA TAXSHIELD - GROWTH
d. MIRAE ASSET TAX SAVER FUND REGULAR PLAN - GROWTH

I have been doing a monthly SIP for the above fund for the last 2 years (April 2017). Do you think I should restructure my portfolio or keep as it is? My time horizon is the next 5 years

Which short term funds (up to 1 year) with no-lock in, would you suggest for investing my idle cash (2-5 lakh) which is lying in a bank savings account? How is the capital gain taxed on such schemes? 

Ans: These are good funds in their categories, ie ELSS, focused and short duration debt fund.

If the objective is growth and corpus creation, debt fund can be substituted with equity fund -- ie DSP Quant will be suitable.

 

Ans: For tax-saving investments, it's wise to continue with the Parag Parikh Tax Saver Fund due to its consistent performance and diversified portfolio. However, consider replacing the other tax-saving fund with a more established option like a well-rated ELSS fund for potential higher returns.

As for non-tax saving funds, your current selection is diversified across different market segments, which is good. To enhance your portfolio, you might want to consider adding a flexi-cap fund to gain exposure to various market opportunities. Increasing your SIP amount is also a good move for long-term wealth accumulation.

Ans: Assessing Your Mutual Fund Portfolio for Optimal Growth

Current Portfolio Overview:

Your current mutual fund portfolio comprises several funds across different categories, including Mirae Asset emerging blue chip fund, Aditya Birla Sunlife 96 tax relief, Axis long term Equity fund, Canara Robeco Equity tax saver fund, and Sundaram Diversified equity.

Evaluation of Current Investments:

Your portfolio demonstrates a diversified approach, spanning both large-cap and tax-saving funds.

Assessment of Fund Performance:

Mirae Asset Emerging Blue Chip Fund: This fund has shown consistent performance historically and may continue to deliver good returns over the long term.

Aditya Birla Sunlife 96 Tax Relief: As a tax-saving fund, it offers the dual benefit of tax savings under Section 80C and potential capital appreciation.

Axis Long Term Equity Fund: This ELSS fund has a track record of delivering robust returns and can be considered for long-term wealth creation.

Canara Robeco Equity Tax Saver Fund: Similar to other ELSS funds, it offers tax benefits along with the potential for capital appreciation.

Sundaram Diversified Equity Fund: This fund focuses on diversified equity investments and aims to generate wealth over the long term.

Recommendations:

Review Fund Performance: Evaluate the performance of each fund against its benchmark and peers to ensure it aligns with your investment objectives.

Consider Market Conditions: Assess the current market conditions and economic outlook to gauge the potential performance of your funds in the future.

Consult a Certified Financial Planner: Seek guidance from a Certified Financial Planner (CFP) to review your investment strategy and make informed decisions based on your financial goals, risk tolerance, and investment horizon.

Consolidate and Rebalance: Consider consolidating your mutual fund holdings to streamline your portfolio and reduce overlap. Rebalance your portfolio periodically to maintain an optimal asset allocation mix.

Stay Invested for the Long Term: Avoid making impulsive decisions based on short-term market fluctuations. Stay invested for the long term to benefit from the power of compounding and potential wealth creation.

Final Thoughts:

In conclusion, maintaining a well-diversified mutual fund portfolio is essential for long-term wealth creation. Regularly monitor your investments, review fund performance, and seek professional advice to make informed decisions aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Yuvaraj, good on you for taking charge of your future! Six SIPs, that's a well-diversified basket, like a wise investor carrying a basket of exotic fruits – a good mix for long-term growth!

It's fantastic that you have a clear goal – accumulating 75 lakhs in 10 years. While predicting the market perfectly is like trying to hold on to a monsoon cloud, your chosen SIPs seem like a good starting point.

Here's the thing: To reach your mountain peak, you might need a map and a guide. A certified financial planner can be your financial Sherpa! They'll analyze your SIPs (a mix of mid, large, small-cap, and ELSS – that's comprehensive!), your risk tolerance, and suggest any adjustments needed to reach your summit.

Remember, a 10-year horizon gives your investments time to weather ups and downs. Stay focused, keep those SIPs flowing, and with careful planning, you might just reach your 75 lakh target and celebrate with a taste of those exotic fruits from your investment basket!