My Portfolio SIPs (All are Direct Growth)

Franklin Focused Eqt - 7000

Franklin Prima - 6000

SBI Bluechip - 7000

SBI Focused Eqt - 6000

SBI Small Cap - 5000

Quantum LT Eqt Value - 5000

Ans: Please continue

Ans: make this horizon to 20yrs and you will make good wealth

Ans: All good if your vision is for 15yrs plus, plz exit JM flexi fund and invest in other good fund

Ans: Your proactive approach to investing in SIPs at a young age is commendable. This sets a strong foundation for long-term wealth creation. Your diversified portfolio reflects a good understanding of market opportunities and risks.

Evaluating Your Current Portfolio
Current Investments:

Your SIPs are spread across small cap, mid cap, and contra funds, with a flexi cap for additional diversification.
Each category serves a distinct purpose in your investment strategy.
Portfolio Composition Analysis
Small Cap Funds:

Growth Potential: Small cap funds offer high growth potential but come with higher risk.
Current Allocation: You have ?6,000 in small cap funds, which is quite aggressive.
Assessment: High risk, high return. Ensure you are comfortable with the volatility.
Mid Cap Funds:

Balanced Growth: Mid cap funds provide a balance between growth and stability.
Current Allocation: ?5,000 in mid cap funds. This is a good strategy to capture growth while managing risk.
Assessment: Moderately risky, suitable for long-term goals.
Value and Contra Funds:

Defensive Strategy: These funds invest in undervalued stocks, aiming for long-term growth.
Current Allocation: ?5,000 combined in value and contra funds.
Assessment: Less risky, suitable for market downturns.
Flexi Cap Funds:

Diversification: Flexi cap funds invest across market capitalizations, providing diversification.
Current Allocation: ?2,000 in flexi cap.
Assessment: Provides a safety net by diversifying across various market segments.
Recommendations for Optimization
Balancing Risk and Growth:

Reallocation Suggestion: Consider reallocating some funds from small cap to more stable options like large cap or balanced funds.
Reason: Reduces overall portfolio risk while still aiming for growth.
Introduction of Large Cap Funds:

Suggestion: Add a large cap fund to your portfolio.
Reason: Large cap funds provide stability and steady returns, balancing the high-risk small and mid cap funds.
Balanced Funds:

Suggestion: Include a balanced or hybrid fund.
Reason: These funds invest in both equity and debt, offering a balanced risk-reward profile.
Portfolio Step-Up Strategy
Regular Increases:

Implementation: Increase your SIP contributions annually as planned.
Reason: Step-up SIPs help in compounding your investments more effectively.
Importance of Professional Guidance
Engage a Certified Financial Planner (CFP):

Benefits: Personalized advice tailored to your financial goals and risk tolerance.
Reason: A CFP can help optimize your portfolio and ensure it aligns with your long-term goals.
Regular Monitoring and Review
Periodic Portfolio Review:

Frequency: Review your investment portfolio at least annually.
Reason: Ensures your investments stay aligned with your goals and market conditions.
Rebalancing:

Action: Rebalance your portfolio if any fund significantly outperforms or underperforms.
Reason: Maintains desired asset allocation and risk level.
Final Thoughts
Your disciplined investment in SIPs across diverse funds is a strong start. For optimal growth and risk management, consider introducing large cap and balanced funds into your portfolio. Regular reviews and professional guidance will keep your investments on track. Your commitment to a 25-year plan with step-ups shows foresight and determination, paving the way for substantial wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Good Morning,

You have built a commendable and diversified investment portfolio at a young age. This proactive approach to investing sets a solid foundation for your future financial goals. Let’s review and assess your portfolio to ensure it aligns with your objectives.

Overview of Your Portfolio
Your portfolio includes a mix of tax-saving funds, large-cap, mid-cap, and small-cap funds, which is a balanced approach to long-term wealth creation. Here is a summary of your investments:

Mirae Asset Tax Saver: 4,500 rupees
Tata ELSS: 3,000 rupees
Parag Parikh Flexi Cap: 3,000 rupees
Mirae Asset Large & Mid Cap: 2,000 rupees
SBI Small Cap: 6,500 rupees
Axis Small Cap: 3,000 rupees
You are also doing step-up SIPs, which is an excellent strategy for increasing your investment amount over time and leveraging the power of compounding.

Assessment and Recommendations
Strengths of Your Portfolio
Diverse Fund Selection:

Your portfolio includes ELSS funds, which offer tax benefits under Section 80C.
The mix of large-cap, mid-cap, and small-cap funds provides balanced exposure across different market capitalizations.
Flexi-cap funds like Parag Parikh Flexi Cap offer flexibility to move across market caps based on market conditions.
Step-up SIPs:

Increasing your SIP amount periodically helps in combating inflation and increasing your investment corpus over time.
Areas for Improvement
Overweight in Small Caps:

You have significant exposure to small-cap funds (SBI Small Cap and Axis Small Cap). Small-cap funds can be highly volatile and risky, especially during market downturns.
Consider reducing exposure to small caps slightly to mitigate risk. Reallocate these funds to more stable large-cap or balanced funds.
ELSS Funds Allocation:

Your investment in ELSS funds (Mirae Asset Tax Saver and Tata ELSS) is good for tax saving, but ensure it aligns with your tax-saving needs.
Evaluate if the current allocation meets your Section 80C limit and adjust if necessary.
Review Fund Performance:

Regularly review the performance of each fund in your portfolio. While you have chosen reputable funds, market dynamics change, and fund performance can vary.
If any fund consistently underperforms, consider replacing it with a better-performing alternative.
Portfolio Rebalancing:

Periodically rebalance your portfolio to maintain the desired asset allocation. This ensures that your investment strategy stays aligned with your financial goals and risk tolerance.
Suggested Adjustments
Increase Allocation to Large-Cap and Balanced Funds:

Consider increasing your investment in large-cap or balanced funds. These funds tend to be more stable and less volatile compared to small-cap funds.
Maintain Diversification:

Continue diversifying across different fund types and market capitalizations to spread risk and maximize potential returns.
Monitor and Adjust Step-up SIPs:

Keep increasing your SIP amounts regularly. Ensure that the increments are sustainable and align with your income growth.
Long-Term Strategy
Stay Invested for the Long Term:

Continue your disciplined investment approach. Staying invested for the long term will help you ride out market volatility and benefit from compounding.
Regular Reviews with a Certified Financial Planner (CFP):

Schedule regular reviews with a CFP to ensure your portfolio remains aligned with your financial goals. A CFP can provide tailored advice and adjustments based on market conditions and personal circumstances.
Emergency Fund and Insurance:

Ensure you have an adequate emergency fund and proper insurance coverage. This will protect your investments from being liquidated during emergencies.
Conclusion
Your portfolio is well-diversified and positioned for growth. By making minor adjustments, increasing stability, and regularly reviewing your investments, you can continue to build wealth effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in