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Should I continue with these 8 MFs?

Ramalingam Kalirajan |11161 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Ganesan on Jul 25, 2024Hindi

Sir, I maintain following SIP Rs 2500 monthly in following 8 MF. is it good to continue Scheme Name Nippon India Vision Fund Growth Plan Growth Option Franklin India Multicap Regular Plan Growth HDFC Defense Fund Regular Plan Growth ICICI Prudential Multi Asset Fund Growth MFGP - Canara Robeco Multi Cap Fund - Regular Growth Plan 02 - HDFC Flexi Cap Fund - Regular Plan - Growth GFGP - NIPPON INDIA GROWTH FUND - GROWTH PLAN GROWTH OPTION 017G - SBI Large & Midcap Fund Regular Growth

Ans: Evaluating Your SIP Portfolio
Current SIP Allocation
You have a diverse SIP portfolio. Each SIP is Rs 2,500 monthly. Here's a look:

Nippon India Vision Fund Growth Plan Growth Option

Franklin India Multicap Regular Plan Growth

HDFC Defense Fund Regular Plan Growth

ICICI Prudential Multi Asset Fund Growth

Canara Robeco Multi Cap Fund Regular Growth Plan

HDFC Flexi Cap Fund Regular Plan Growth

Nippon India Growth Fund Growth Plan Growth Option

SBI Large & Midcap Fund Regular Growth

Portfolio Assessment
Your SIP portfolio has eight funds. They cover multiple categories. Here are some insights:

Diversification: Your portfolio is diversified. This reduces risk.

Fund Categories: You have funds in multi-cap, flexi-cap, large & mid-cap, and sectoral. This is good for balanced growth.

Actively Managed Funds vs. Index Funds
You've chosen actively managed funds. This is a good decision. Actively managed funds can outperform the market. Certified Financial Planners can help select the best funds.

Disadvantages of Index Funds
Lack of Flexibility: Index funds cannot change their holdings.

Average Performance: Index funds only match market returns.

Market Risks: Index funds are fully exposed to market downturns.

Regular Funds vs. Direct Funds
Regular funds are better for many investors. Here's why:

Professional Advice: You get advice from Certified Financial Planners.

Convenience: Regular funds are easier to manage.

Better Decision Making: Regular funds help you avoid mistakes.

Suggested Adjustments
You have a good start. But a few adjustments can optimize your portfolio:

Reduce Overlap: Check for overlapping investments in similar funds. Too much overlap can dilute returns.

Sectoral Funds: HDFC Defense Fund is sector-specific. Sectoral funds can be volatile. Consider reducing allocation to sectoral funds.

Focus on Core Funds: Core funds like flexi-cap and multi-cap should form the bulk of your portfolio. They offer stability and growth.

Benefits of Regular Review
Regularly reviewing your portfolio is essential. This ensures alignment with goals and market conditions:

Rebalance Portfolio: Adjust your investments based on performance and goals.

Stay Informed: Keep up with market trends and fund performance.

Certified Financial Planner Advice: Regular consultations with a Certified Financial Planner can provide valuable insights.

Final Insights
Your current SIP portfolio is well-diversified. However, some fine-tuning can enhance its performance. Reduce overlap and focus on core funds. Regular reviews and Certified Financial Planner advice will keep your portfolio on track. Investing through regular funds provides professional guidance and convenience. Avoid sectoral and index funds to minimize risk and ensure better returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

Name of the Fund	Category	RankMF Star Rating	Recommendations
Ramesh Koti
1) Birla Sun Life Pure Value Fund – Growth	Equity - Value Fund	1	switch to Axis ESG Fund - Growth
2) Canara Robeco Emerging Equities – Growth	Equity - Large & Mid Cap Fund	4	continue
3) DSP Black Rock Income Opportunities Fund - Growth (Dsp Credit Risk Fund - Regular Plan)	Debt - Credit Risk Fund	2	Credit Risk funds to be avoided , instead Corporate Bond or Banking and PSU funds to be considered
4) DSP Black Rock Small And Mid Cap Fund - Growth
Dsp Small Cap Fund - Regular Plan – Growth	Equity - Small cap Fund	2	switch to Axis ESG Fund - Growth
Dsp Midcap Fund - Growth	Equity - Mid cap Fund	4	continue
5) Franklin India Prima Fund - Growth	Equity - Mid Cap Fund	2	Switch to - Dsp Midcap Fund - Growth
6) Kotak Emerging Equity Scheme - Regular Plan - Growth	Equity - Mid Cap Fund	3	Switch to - Dsp Midcap Fund - Growth
7) L&T Emerging Businesses Fund - Regular Plan - Growth	Equity - Small cap Fund	2	switch to Axis ESG Fund - Growth
8) L&T India Value Fund - Regular Plan – Growth	Equity - Value Fund	2	switch to Axis ESG Fund - Growth
9) SBI Magnum Midcap Fund - Growth	Equity - Mid Cap Fund	2	Switch to - Dsp Midcap Fund - Growth
10) Sundaram Select Midcap – Growth	Equity - Focused Fund	2	switch to Axis Focused 25 Fund - Growth