I'm 27 years old and have made 4 monthly SIPs of 5,000 rs each, two months ago. They are:

1. Axis Bluechip Fund - Direct Plan Growth

2. Quant Small Cap Fund -Growth Option Direct

3. PGIM India Midcap Opportunities Fund - Regular Plan Growth

4. Quant Active Fund - Growth

Could you please advice me whether I should continue with these funds or switch. I was also considering to put invest an additional 20,000 rs a month. I was planning to either put it in MF's or use it for a PPF account. Please advice what's the best thing to do with this sum, I aim to retire by the age of 45.

Ans: Funds are good but too many funds are there in portfolio, exit from 4 and 9 rest is fine.

Ans: You may continue with 1, 3, 4, 5, 6, 8 & 9

Ans: Hello B Saravanan. Your portfolio seems in line with the market. I would recommend you reconsider Parag Parikh AMC and switch to better alternative schemes in same category. Also, you may introduce mid cap, large & mid cap categories for your future new sips.

Ans: It's great that you're investing your monthly surplus in SIPs to build your wealth.

You have a well-diversified portfolio and the funds in your portfolio are performing well in the current market scenario. In the finance planning of any portfolio, it is also important to consider many factors, including client age, risk profile, current asset allocation, etc.

As you’re 55 years of age and already have a high allocation of equity in your portfolio, for the additional investment, I suggest you start investing in a Balanced Advantage Fund and Equity Saving Fund to make your portfolio a bit conservative.

Ans: It's great that you're investing systematically through SIPs to achieve your financial goals. However, it's essential to review your investment strategy periodically to ensure it aligns with your objectives and risk tolerance.

Considering your aim to accumulate 50 lakhs in 5 years and your willingness to take high risk, here are some considerations:

One-time SIPs: Investing in small-cap and multi-cap funds can potentially offer higher returns but also comes with higher volatility. Given your relatively short investment horizon of 5 years, ensure you're comfortable with the risk associated with these funds.
Monthly SIPs: Continuing SIPs in small-cap and PSU funds aligns with your risk appetite. However, it's crucial to monitor the performance of these funds regularly and be prepared for market fluctuations.
Review and Adjust: Periodically review the performance of your funds and assess if they're on track to meet your goal of accumulating 50 lakhs in 5 years. If necessary, consider rebalancing your portfolio or switching to funds with better growth potential and risk-adjusted returns.
Diversification: While high-risk investments have the potential for higher returns, it's essential to diversify your portfolio to mitigate risk. Consider adding funds from different categories such as large-cap or balanced funds to achieve diversification.
Consult a Financial Advisor: Given the complexity of investing and your specific financial goals, consider consulting with a financial advisor who can provide personalized advice tailored to your needs and objectives. They can help you evaluate your investment strategy, identify any gaps or areas for improvement, and make informed decisions to maximize your returns while managing risk.
By staying informed, regularly reviewing your portfolio, and seeking professional guidance when needed, you can increase the likelihood of achieving your financial goals effectively.