Myself, Sudhir Nair, age 47 years old, SIP investment in Mutual fund since last 4 years in below MF (Horizon 10years).

Self MF Details:

• Kotal Emerging Equity Fund Regular Fund - 5000 (Started Aug 2017)
• Kotak Flexi Cap Fund Regular Plan Growth - 2500 (Started Aug 2017)
• SBI Blue Chip Fund Regular Plan Growth 2500 (Started Aug 2017)
• HDFC Mid Cap Opportunities Fund - Growth - 2000 (Started June 2019)
• IDFC Large Cap Fund Growth - 2500 (Started Feb 2018)
• Mirae Asset Emerging Bluechip Fund - 2000 (Started July 2019)
• Axis Bluechip Fund Growth - 2000 (Started Dec 2019)
• Axis Focused 25 Fund Growth - 2500 (Started Aug 2020)
• HDFC Index Fund - Nifty 50 Plan - Direct - 2500 (Started Mar 2021)
• Kotak Opportunities Fund - Growth - 2500 (Started Dec 2017 and ended Nov 2020)
• L&T India Value Fund Growth - 2500 (Started Feb 2018 and ended July 2020)

Wife Mutual Fund Details:

• Axis Focused 25 Fund Growth - 2500 (started Dec 2019)
• SBI Blue Chip Fund - 2000 (Started Jun 2019)
• Mirae Asset Large Cap Fund - 2500 (Started Dec 2019 later increased 2500 from Oct 2020)
• ICICI Prudential Multicap Fund Growth - 1500 (Started Aug 2020)
• Kotak Global Fund of Fund (Direct) - Rs. 100000 (July 2021)
• Navi Nifty Index Fund Growth - Rs. 15000 (July 2021)

Kindly advise whether current funds are good or should switch to some other.

Ans: Your commitment to long-term investing is commendable, and your portfolio displays a diversified mix of mutual funds. Let's assess your strategy and its suitability for your financial goals.

Investing ?15,000 monthly with a 10% step-up annually indicates a disciplined approach to wealth accumulation. It's essential to review your investments periodically to ensure they align with your evolving financial objectives.

Your choice of direct growth funds reflects an understanding of the importance of minimizing expenses and maximizing returns. There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:

Advantages of Investing Through a Mutual Fund Distributor (MFD):

• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.


While actively managed funds like Quant ELSS and Parag Parikh Flexi Cap offer the potential for higher returns, they also come with higher management fees and the risk of underperformance. On the other hand, index funds like ICICI Index can provide market-matching returns at lower costs.

Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.

Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.

Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.

Diversifying across various market caps and sectors, as seen in your portfolio, helps spread risk and capture growth opportunities. However, it's crucial to monitor the performance of each fund and make adjustments as needed.

Investing for a duration of 20-25 years aligns with long-term wealth creation goals. However, keep in mind that market conditions can fluctuate, and past performance is not indicative of future results.

Regularly consulting with a Certified Financial Planner can provide valuable insights and ensure your investment strategy remains on track. They can help assess your risk tolerance, adjust your asset allocation, and optimize your portfolio for better returns.

In conclusion, continuing your investment with regular reviews and adjustments is a prudent approach towards achieving your long-term financial objectives.

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