Sir, I'm investing 4K /M in 5 following funds:- 1) SBI Large and Midcap 2) SBI Small Cap 3) SBI Blue chup 4) SBI Tech opportunity 5) Aditya Birla Sun life Pharma and Healthcare I'm investing in above funds from last few years ....

Sir, I'm investing 4K /M in 5 following funds:- 1) SBI Large and Midcap 2) SBI Small Cap 3) SBI Blue chup 4) SBI Tech opportunity 5) Aditya Birla Sun life Pharma and Healthcare I'm investing in above funds from last few years . Performing well till date . Should continue or add some change others in my portfolio. please guide

Ans: our portfolio leans towards aggressive growth with small-cap, thematic (pharma), and technology funds. This can be good for long-term wealth creation, but consider diversification:

Review your risk tolerance: Are you comfortable with potential volatility?
Balance your portfolio: Add a large-cap fund or multi-asset allocation fund for stability.
Monitor performance: Regularly review your funds and their performance compared to benchmarks.
Consider consulting a qualified financial advisor for a personalized assessment and potential portfolio adjustments.

Ans: You have done well to start early at age 36.
A 24-year horizon gives you a powerful advantage.
You also seem clear in your intent to consolidate.
Too many funds create overlap and confusion.
Your step to reduce and focus is absolutely right.

» Reviewing Your Existing Portfolio

– You currently hold 8 different mutual funds.
– Some are for short goals (ELSS, HSBC, Zerodha).
– Others are long-term growth funds (Focused, Flexi, Small, Mid, Momentum).
– Your SIP commitment shows great discipline.
– Let us go through each one and evaluate.

» SBI Focused Fund – Continue

– This is a focused equity fund.
– A good long-term holding for wealth creation.
– Fund size and management are stable.
– You already increased SIP gradually.
– Continue and increase gradually with income growth.
– Avoid replacing this. It adds quality.

» PPFAS Flexi Cap – Continue

– One of the most consistent flexi-cap funds.
– Balanced risk and global exposure strategy.
– It fits long-term goals well.
– Fund manager is known for stability.
– You started recently. Give it time.
– Continue without changes. Increase SIP steadily.

» Nippon Small Cap – Continue

– Small caps bring growth but higher volatility.
– You are young. You can handle this.
– Don't go overboard with small-cap exposure.
– Keep this as your only small-cap fund.
– Avoid adding more in this category.
– Continue but cap exposure below 20% total.

» Mirae Asset ELSS – Stop After Rs.1L

– ELSS is mainly for tax saving.
– Once Rs.1 lakh 80C is done, no need.
– Keep it only if you lack 80C coverage.
– Else, stop after your Rs.1 lakh investment.
– No long-term need to retain it.
– Shorter lock-in makes it manageable.

» Zerodha Nifty 250 – Stop After Rs.1L

– This is an index fund.
– Index funds blindly copy market index.
– No fund manager input. No downside protection.
– Returns are average, not exceptional.
– Active funds give better value with skill.
– Stop at Rs.1 lakh as planned.
– Avoid further investment in index options.

» HSBC Multi Cap – Stop After Rs.1L

– Multi-cap is already covered via flexi cap.
– Also, Focused Fund gives good diversification.
– No need for overlap through this fund.
– Performance and consistency are also average.
– Stop SIP after reaching Rs.1 lakh.
– Do not increase this one further.

» Motilal Oswal 500 Momentum 50 – Continue

– This is a thematic strategy-driven fund.
– Momentum funds are volatile but can outperform.
– Keep exposure moderate, not more than 15%.
– Track performance closely every 2 years.
– Continue for now, but with caution.
– Increase SIP only if performance justifies it.

» Motilal Oswal Mid Cap – Continue

– Mid-cap is a must in long-term portfolio.
– Gives strong growth potential with some risk.
– Stick to only one mid-cap fund.
– You started recently, give it time.
– Continue and increase SIP slowly over years.

» Ideal Fund Count for You

– Keep only 4 or 5 mutual funds.
– This keeps your tracking easy and efficient.
– More funds create duplication and stress.
– Your long-term portfolio can be:

1 Focused Equity Fund

1 Flexi Cap Fund

1 Mid Cap Fund

1 Small Cap Fund

1 Thematic Fund (optional - Momentum)

– This keeps it clean and balanced.

» Recommended Action Plan Now

– Continue SBI Focused, PPFAS Flexi Cap, Nippon Small Cap.
– Continue Motilal Oswal Mid Cap and Momentum 500.
– Stop SIP in ELSS after Rs.1 lakh is reached.
– Stop Zerodha index fund after Rs.1 lakh is reached.
– Stop HSBC Multi Cap after Rs.1 lakh is reached.
– Increase SIPs in Focused, Flexi, Mid gradually.
– Keep total SIP in Small and Momentum limited.
– Let core SIPs go into Focused and Flexi Cap.

» Asset Allocation Tips

– Equity should be 80% or more at your age.
– Within equity, use this breakdown:

40% – Flexi + Focused (core funds)

25% – Mid Cap

15% – Small Cap

10% – Momentum

10% – Others (short-term goals, ELSS if needed)

– This keeps your portfolio aggressive but smart.

» Avoid Direct Plans – Stick with Regular Funds

– Direct plans save commission but offer no guidance.
– Mistakes in selection and timing are costly.
– Regular funds through a Certified Financial Planner help.
– You get human support, behaviour control and reviews.
– Good advice adds more value than saved fee.

» Don’t Add More Funds Now

– You already hold enough categories.
– Adding one more mid/small-cap fund is unnecessary.
– Instead, increase SIP in existing mid/small-cap fund.
– This keeps focus and improves compounding effect.
– Less clutter. More growth.

» Don’t Replace Core Funds

– Don’t shift from Focused or Flexi Cap funds.
– They are long-term wealth creators.
– Allow them time to show results.
– Avoid jumping to new trendy funds.

» Monitor SIPs Annually

– Review once in a year.
– Check returns against benchmarks and peers.
– Don’t panic with short-term underperformance.
– See 3 to 5 year consistency.
– Only then decide to switch or increase.

» Understand Tax Impact Clearly

– For equity MFs, LTCG above Rs.1.25 lakh taxed at 12.5%.
– STCG (below 1 year) taxed at 20%.
– Avoid frequent redemptions to save tax.
– Let funds grow for 10+ years.
– ELSS lock-in is 3 years but stay longer.
– Plan redemptions smartly after year 20.

» Insurance Must Be Separate

– Don't mix investment and insurance.
– Buy a pure term insurance plan separately.
– Don’t buy ULIPs or endowment policies.
– If you hold them, surrender and move to MFs.
– Insurance is for protection, not returns.

» Build Emergency Fund Separately

– Keep 6 months of expenses in a liquid fund.
– Don’t use equity mutual funds for emergencies.
– This protects SIPs during tough times.
– Helps you avoid stopping or redeeming in panic.

» Use a Certified Financial Planner

– A professional adds structure to your goals.
– They keep your asset mix balanced.
– They stop you from making emotional decisions.
– Use one to guide you for 24 years.
– Long-term plans need expert review and tracking.

» Finally

– You have started very well.
– You show great clarity and intent.
– Just reduce the clutter now.
– Focus only on 4 to 5 good funds.
– Gradually increase SIPs in your top 3.
– Don’t add new funds for now.
– Monitor and review once each year.
– Let compounding do its job slowly.
– Follow discipline, patience and planning.
– Stay invested for full 24 years.

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

https://www.youtube.com/@HolisticInvestment