I'm 24 years old and looking to invest in mutual funds for at least 25 years. (I'm already invested in a few funds for 3 years, but going to reshuffle my entire portfolio as I want to stay invested for 25 years). I'll start with 40k per month in mutual funds, and step up every year as well. I wouldn't have to buy a house or a car in the near future (20+ years,) and don't have any emi as well. I'm planning to investin:

1. 50% of my capital in index fund (Uti index fund) 

2. Parag Parekh flexi cap (25%) 

3. Axis small cap (25%). {Sbi and quant small caps are also a choice}

I invest monthly in my ppf and buy gold as well. (that takes care of my debt investment, i.e safe investment). 

Sir, As I'm planning on investing for 20+ years, I think I should invest higher amount in flexi and small cap, but on the other hand, if the funds underperform the nifty in the long term, I'd take a big hit. 

I'm super confused, idk what to do.Please guide me. Stay safe. 

Ans: Your current portfolio comprises a mix of diversified equity, international exposure, gold, and tax-saving funds, reflecting an aggressive to moderate risk profile. Adding a Nifty index fund can further diversify your portfolio and provide exposure to large-cap Indian stocks. However, it's essential to ensure that the new addition aligns with your overall asset allocation and investment goals. A Certified Financial Planner (CFP) can help you evaluate your portfolio, recommend suitable adjustments, and ensure it remains aligned with your risk tolerance and financial objectives for optimal growth.

Ans: It's great to see your proactive approach towards investing at the age of 32, with a clear horizon of 10-15 years and a willingness to take on risk to achieve your wealth creation goals. Let's review your investment portfolio to ensure alignment with your objectives.

Assessment of Fund Selection:

Parag Parikh Long Term Equity Fund (PPLTEF): This fund follows a flexible investment strategy, investing in a mix of Indian and foreign equities. It's known for its consistent performance and focus on quality stocks.

Kotak Standard Multicap Fund: Multicap funds offer diversification across market capitalizations. Kotak is a reputable AMC, and this fund has a strong track record of delivering steady returns over the long term.

Canara Robeco Small Cap Fund: Small-cap funds have the potential for high growth but come with higher volatility. Canara Robeco has a decent reputation, but small-cap investments require careful monitoring due to their inherent risk.

Canara Robeco Bluechip Equity Fund: Blue-chip funds invest in large-cap stocks known for their stability and reliability. This fund offers a conservative approach within your portfolio, balancing the risk associated with small-cap investments.

ICICI Prudential Value Discovery Fund: Value-oriented funds focus on undervalued stocks with growth potential. ICICI Pru is a trusted AMC, and this fund aims to deliver long-term capital appreciation.

Axis Growth Opportunities Fund: This fund targets growth-oriented companies across sectors. With a focus on mid and small-cap stocks, it adds diversification to your portfolio but may come with higher volatility.

HDFC Balanced Advantage Fund: Balanced advantage funds dynamically manage equity exposure based on market conditions. This can provide stability during market downturns while capturing growth opportunities during upswings.

Groww Index Fund: Index funds passively track market indices. While they offer low expense ratios and broad market exposure, they may underperform actively managed funds during certain market conditions.

Axis Long Term Equity Fund (ELSS): ELSS funds offer tax benefits under Section 80C of the Income Tax Act. Axis is a reputable AMC, and this fund invests predominantly in equity, providing potential for capital appreciation along with tax savings.

Overall Portfolio Assessment:

Your portfolio reflects a diversified mix of equity funds across market capitalizations and investment styles. It's well-suited for long-term wealth creation, considering your risk appetite and investment horizon.

Recommendation:

Regularly review your portfolio's performance and rebalance if necessary to maintain your desired asset allocation. Consider consulting with a Certified Financial Planner periodically to ensure your investments remain aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hi Rajesh,

Appreciate your dedication in investing in mutual funds for long term. The funds selected by you are very random and not recommended for your goal. Overall investments are also not in alignment, this portfolio is a very random one.
Currently you are investing 36000 per month - keep your investments simple in largecap, midcap, smallcap and mutlicap fund. Keep additional 1 lakh as well in these funds.

You should consider exiting funds like quant and shift to more stable ones.

Your current funds are direct, but direct funds are over-rated. A random portfolio like this can instead give less returns than a professionally designed one. It is always better to go for a regular portfolio suggested by a professional. Proper funds with a designed dedicated plan will help you reach your goal of 2 crores in 10 years in an efficient way.

Hence do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Dear Rajesh,
At 36, you are investing ?36,000 per month across eight mutual funds, but your portfolio is cluttered and heavily tilted toward high-risk Quant schemes and mid/small caps. This reduces stability and creates unnecessary overlap. A cleaner, balanced structure will help you reach your ?2 crore target by 2035. Retain strong core funds like Parag Parikh Flexicap, Mirae Tax Saver, PGIM Midcap, and Nifty Midcap 150 Index. Exit Quant Infrastructure, Quant Active, and Quant Absolute, and reduce exposure to Quant Small Cap. Add stability through ICICI Balanced Advantage and a large-cap or flexicap fund such as ICICI Bluechip or Kotak Flexicap. Continue your SIP of ?36,000 but increase it by 10% annually to boost long-term compounding. The additional ?1 lakh per year can be invested in ICICI Balanced Advantage or Parag Parikh Flexicap to balance risk and growth. With disciplined allocation, controlled exposure to mid- and small-cap stocks, and systematic yearly SIP increases, achieving a ?2 crore corpus within the next 12 years is realistic and achievable. Regards, Nitin Narkhede -Founder, Prosperity Lifestyle Hub,
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