Name of fund Units Rate on Purchase Purchase Single investment 30.4.23 Rate Date SBI Focused Equity Fund Regular Growth 645 217.73 227 4.8.22 SBI Blue Chip Fund Regular Plan Growth 822 61.75 60.84 4.8.22 SBI Multicap Fund Regular plan Growth 34953 10.05 10.59 4.8.22 HDFC Tax Saver Direct Plan Growth Option 40000/- 9.3.20 HDFC Developed World Indexes FundOf Fund 50000/- 21.10.21 HDFC Equity Savings Fund Direct Plan Growth 70000/- 21.10.21 HDFC Nifty Next50Index Fund direct growth 50000/- 3.11.21

Ans: Hello;

Your mutual fund monthly sip of 8 K need to be increased to 10 K ( maybe you can add 2 K additional investment in Kotak ELSS tax saver fund).

PPF and other investment should continue as planned.

This will ensure your MF corpus + PPF will reach 60 L+ in value over 12 years.

LIC policy maturity sum and NPD will be bonus.

Funds are good. No need to change.

Happy Investing;

Ans: You have a fairly diversified portfolio with exposure across equity funds, tax-saving instruments, and fixed-income products. Let's evaluate your current portfolio:

Equity Exposure
Multicap and Flexi-cap Funds:

You have good exposure to multicap and flexi-cap funds. These funds are beneficial as they provide exposure across different market caps (large, mid, small), offering balanced risk and growth potential.
The fund choices are varied, but some of them overlap in terms of the equity segments they cover. This may lead to duplication, reducing the overall diversification.
Tax-saving ELSS Funds:

Both Kotak ELSS Tax Saver Fund and Union Tax Saver Fund provide tax benefits under Section 80C. This is an excellent strategy for reducing taxable income while simultaneously growing wealth over the long term. However, having two ELSS funds with similar objectives may not be necessary.
Consider reviewing the performance and making sure that your tax-saving investments are optimized for returns.
Nifty and Gold Exposure:

Your investment in the Bandhan Nifty 200 Momentum Index Fund introduces some exposure to index funds, but remember, index funds tend to track market performance and do not offer active management. While this can be a cost-effective option, you might miss out on higher growth opportunities that actively managed funds can offer.
Gold exposure via UTI Gold ETF is a good hedge against inflation, but it is a passive investment and does not generate income.
Fixed Income Exposure
PPF and NPS:

Your investment in PPF (Public Provident Fund) and NPS (National Pension Scheme) is a solid long-term savings strategy. These provide safety, tax benefits, and long-term growth.
PPF locks your funds for 15 years, but it offers guaranteed returns, which is an excellent option for conservative savings. NPS, however, provides exposure to equity and debt markets and is a good retirement planning tool.
LIC:

LIC investments are a combination of insurance and savings. However, considering the long-term performance and opportunity cost, it might be worth reviewing whether these investments align with your future goals or if reallocating these funds into mutual funds could offer better returns.
Investment Amount and Goals
Given your monthly SIP of Rs. 10,500 and annual investments of Rs. 2.5 lakh in PPF, NPS, and LIC, it is essential to have a clear vision of your financial goals over the next 10-12 years.

Expected Return of Rs. 60-70 Lakh:
Based on your goal of accumulating Rs. 60-70 lakh in the next 10-12 years, your current portfolio seems reasonable. However, there are areas where optimization can boost the chances of meeting your goal.
Suggested Portfolio Reshuffling
Reduce Fund Overlap:

You are holding multiple multicap funds with similar objectives. It might be wise to consolidate these into one or two strong performers to reduce duplication.
Evaluate whether the Nifty 200 index fund is in line with your preference for actively managed funds.
Focus on Actively Managed Funds:

Active Management: Actively managed funds tend to provide higher returns, especially in fluctuating markets. They also help mitigate risks, unlike index funds, which follow market movements and may not outperform during volatile periods.
Consider focusing on large-cap, mid-cap, and small-cap funds for equity growth while also ensuring there is exposure to sectoral funds and thematic funds for extra diversification.
Diversified Growth-Focused Funds:

Given your long-term horizon, including growth-oriented funds is crucial. You may consider adding more funds with a history of consistent outperformance in the equity space.
Tax Optimization:

Your tax-saving investments are well-distributed between ELSS, PPF, and NPS. However, reviewing your ELSS funds for performance is essential. Choose funds that consistently outperform their benchmark and offer strong long-term growth.
Gold Exposure:

Gold exposure via ETFs is beneficial, but consider limiting it to around 5-10% of the portfolio as a diversification hedge. You may also explore mutual funds that invest in gold.
Final Insights
Consolidate Funds: Reduce the number of funds to avoid overlap and improve focus on quality investments.
Increase Focus on Actively Managed Funds: Focus on actively managed equity funds to achieve better returns in the long run.
Evaluate Tax-Saving Instruments: Review your ELSS investments for their performance and align them with your risk profile.
Goal-Oriented Approach: Stay focused on your long-term goals and ensure that your asset allocation matches your risk tolerance and time horizon.
Finally, given your clear objective of growing wealth to reach Rs. 60-70 lakh over the next 10-12 years, restructuring your portfolio to optimize risk and returns will significantly help you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You have shown a disciplined approach. A monthly SIP of Rs. 30,000 is a strong commitment. Your target of Rs. 2 Crore in 15 years is practical. But the way your current portfolio is built needs review. Let's understand your investments with clarity.

Overall Portfolio Structure Review

You are investing in too many schemes at once.

Diversification is good. But over-diversification leads to average returns.

A focused portfolio gives more clarity and better long-term growth.

Some schemes are overlapping in investment style. That reduces uniqueness.

Too many funds make portfolio hard to track and manage.

Over 15 mutual fund schemes is too much for Rs. 30,000 SIP.

You are using both direct and regular plans. That’s not good.

Mixing direct and regular plans reduces overall performance tracking.

Some funds are also in ETF and index format. That needs caution.

Let's now look deeper into specific categories used in the portfolio.

Issue with Direct Plans in the Portfolio

You have direct plans in your portfolio.

Direct plans do not offer guidance or review.

They may seem low cost. But poor choices harm returns.

You may hold the wrong fund for your risk profile.

You may miss timely rebalancing. That hurts performance.

Regular plans through Certified Financial Planner add value.

You get professional fund tracking and goal alignment.

CFP helps you in tax optimisation, withdrawals and fund switch.

A regular plan with CFP is cost-effective over long term.

I strongly suggest to exit direct plans and move to regular ones.

Problems with Index and ETF Funds in Portfolio

You are holding index-based funds and ETF-based funds.

These are passive funds that copy market performance.

They don’t protect you in volatile or falling markets.

They give no strategy during market downturn.

They also don’t adjust based on sector trends.

You miss the benefit of expert fund manager thinking.

Actively managed funds are smarter.

Fund managers choose sectors and stocks actively.

That helps avoid poor performers and focus on leaders.

In long term, actively managed funds give better risk-adjusted returns.

So you should exit index funds and ETF-type schemes.

ELSS and Tax Saving Fund Review

You have more than one ELSS in the portfolio.

ELSS is good for tax saving under 80C.

But you don’t need more than one ELSS fund.

Multiple tax saving funds give no extra tax benefit.

They block your money for 3 years with no added value.

Choose one good ELSS fund under regular plan with CFP guidance.

Rest of the SIP should go to long-term diversified mutual funds.

Sector and Theme Based Fund Exposure

You have sector funds like energy, manufacturing and business cycle.

These funds are risky and volatile.

They do not work well in all phases of market.

These need strong timing and sector knowledge.

Not suitable for long-term goal like Rs. 2 Crore corpus.

Best to exit these sector funds step by step.

Shift SIP into diversified actively managed funds with better stability.

Flexi Cap and Large & Midcap Fund Exposure

You are investing in multiple flexi cap funds.

Flexi cap funds offer dynamic allocation flexibility.

But having too many of them is not useful.

You may have duplication in stock holding.

Choose 1 or 2 flexi cap funds managed under regular plan.

Combine this with 1 large and midcap fund.

It is enough to give core portfolio strength.

Midcap and Smallcap Exposure Review

Your portfolio has midcap and smallcap funds.

These are needed for wealth creation. But must be balanced.

Right now, exposure looks too high in smallcap.

Smallcap returns are volatile and take time to recover.

A Certified Financial Planner can help balance this allocation.

You need higher allocation to largecap and diversified funds.

That gives steady growth and risk protection.

Portfolio Structuring for Target of Rs. 2 Crore

You need average returns between 12% to 14% yearly.

To achieve this, your funds must be of good quality.

Fund consistency matters more than past performance.

You need a focused and goal-linked portfolio now.

Start with 5 to 6 well-managed mutual funds only.

All should be under regular plan with CFP tracking.

These must be reviewed at least once in 6 months.

You must also increase SIP by 10% yearly if possible.

Suggestions to Clean and Optimise Portfolio

Stop SIPs in sector, thematic, and passive funds.

Exit direct plans and move to same funds in regular plan.

Keep only one ELSS fund for tax saving.

Choose 2 flexi cap funds and 1 large & midcap fund.

Add 1 midcap and 1 smallcap fund based on CFP advice.

Keep total fund count under 6 or 7.

All SIPs should be monitored by Certified Financial Planner.

Don't invest in funds based on social media or trends.

Each fund must have a clear purpose in your goal.

Monitor, Review, and Rebalance Periodically

SIP is not a one-time setup.

You must review your funds at least every 6 months.

Market conditions and fund performance change.

Rebalancing helps keep your plan on track.

Stop underperforming funds. Add to good ones.

A Certified Financial Planner tracks this for you.

That ensures your Rs. 2 Crore goal stays achievable.

Other Financial Planning Areas You Must Review

Keep an emergency fund of at least 6 months expenses.

Buy a pure term insurance. Keep sum assured 10 times annual income.

Buy health insurance if not already done.

Avoid investing in ULIPs, traditional policies, or annuities.

Don't mix insurance and investment.

All investment should be under your or family member's name.

Also create a WILL for smoother transfer later.

Nominee details in mutual funds must be updated.

Don’t use bank agents or online portals for advice.

Always prefer Certified Financial Planner for 360-degree solution.

Finally

You are already on the right path.

But your portfolio is scattered and unfocused.

Direct funds, ETF funds and sectoral funds must be reviewed.

Move to quality, actively managed mutual funds in regular plan.

Keep portfolio simple, structured, and professionally monitored.

Track your progress yearly with guidance of Certified Financial Planner.

With right changes, your Rs. 2 Crore goal is achievable in 15 years.

Stay disciplined and follow a well-planned investment approach.

Your future wealth depends on how well you act now.

Focus on quality, guidance and goal tracking, not quantity of funds.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: in 30k SIP you have brought lots of Schemes, while its diversified well but would suggest to reduce some schemes or merge with the same type of schemes.