Hi Nikunj I am 34 years old earning aroung 70k/m 16 k savings /month Could you please review my MF portfolio ET money high growth 5k/m started this year DSP Tax saver- started May 2017 3k/m CanRob Tax saver Jan 2021 2k/m PPFFAS Flexi Started Jan 2021- 2k/m DSP small - lumpsum 160000 DSP quant - lumpsum 105000 UTI Flexi - July2021 1k/m Quant small cap 1k/m Motilal Oswal Nasdag 100 FOF 500/m SBI Bluechip 1k/m UTI Mid - July2021 1k/m Stopped DSP Mid - July 2021 1k/m Stopped PPF 500/m

Ans: Please continue

Ans: Assessment of Your Mutual Fund Portfolio:

Your Current Holdings:

You've shown commendable discipline in your investment journey with a monthly surplus of Rs. 16,000.
Your portfolio demonstrates a diversified mix of mutual funds across various categories, indicating a thoughtful approach towards wealth accumulation.
It's evident that you've been investing systematically, which is a prudent strategy for long-term wealth creation.
Your allocation to tax-saving funds is strategically aligned with your financial goals, ensuring tax efficiency while building wealth.
Areas of Consideration:

While your portfolio appears well-structured, it's crucial to periodically review and rebalance to align with your evolving financial objectives and market conditions.
The decision to halt investments in certain funds in July 2021 indicates a proactive stance towards optimizing your portfolio.
Lumpsum investments in specific funds indicate confidence in their potential, but it's essential to monitor their performance regularly.
The absence of index funds in your portfolio raises the question of whether you've explored their benefits adequately.
Recommendations:

Regularly reviewing your portfolio's performance and rebalancing it in line with your financial goals is imperative.
Consider diversifying into index funds to harness the benefits of low-cost, passive investing, especially in segments where actively managed funds may underperform.
Direct funds offer lower expense ratios, but investing through a Certified Financial Planner can provide personalized advice and ongoing support, enhancing the overall value of your investments.
In conclusion, your portfolio reflects a disciplined and diversified approach towards wealth creation. However, exploring the benefits of index funds and leveraging the expertise of a Certified Financial Planner could further optimize your investment strategy.

Best Regards,

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

Ans: As per the data provided by you, I feel that:-

1. You have over diversified your portfolio by investing in so many funds. There seems to be a lot of overlapping in your portfolio. Ultimately equity funds invest in stocks and if your funds are investing in similar stocks, you are not achieving any diversification which you may think you are doing.

2. You also hold multiple ELSS fund which are used for tax benefit purpose and come with lock in for 3 years. If you are solely investing under this for the tax saving then we suggest you to have only one good fund.

Regarding your funds:-

1. DSP Tax Saver Fund, Canara Robeco Tax Saver Fund and Quant Tax plan: These funds have a decent track record in their category. Having one tax saver fund is enough.

2. Parag Parikh Flexi Cap Fund: The scheme is not bound by any market capitalisation. It also has the freedom to invest in stocks listed overseas. Therefore, I would suggest you to continue with this fund.

4. DSP Small Cap & Quant Small Cap : The lump sum investment in this fund indicates a concentrated bet on small-cap stocks. Small-cap funds can be volatile, but they also offer growth potential. Monitor its performance closely and be prepared for potential fluctuations in returns. We recommend you to hold one fund in this category to get the exposure of small cap which is risky in nature as compared to large & mid cap category.

5. DSP Quant Fund: Similar to DSP Small Cap, this fund focuses on quant-based strategies based on macro and micro factors. Evaluate its performance and consider your risk tolerance before making any decisions.

7. Motilal Oswal Nasdaq 100 FOF: The fund invests in international companies and sectors that helps in eliminating the concentration risk. Continue with this fund.

8. Motilal Oswal Midcap, UTI Mid Cap fund, DSP Mid Cap Fund and PGIM India Midcap Opportunities Fund: I recommend you to hold just one fund in this category to get the exposure of mid cap which is risky in nature as compared to large cap category.

9. SBI Bluechip Fund: This lump sum investment in a large-cap fund can provide stability to your portfolio. Continue with it and continue monitoring its performance relative to its benchmark.

10. UTI Flexi Cap Fund: Similar to DSP Mid, assess its performance and alignment with your investment goals, especially since you've stopped investing in it. I recommend you to redeem from this fund once the exit load period is over.

11. PPF: Contributing to PPF is a good long-term savings option due to its tax benefits and guaranteed returns. It's wise to continue investing in it unless you have specific financial goals or liquidity needs but if you have a goal of your retirement then we would suggest you to invest in NPS (National Pension Scheme) instead of this.

Regarding your plan to add SBI Contra and Mirae Asset NYSE FANG+ ETF FoF, it's important to evaluate these funds based on their historical performance, expense ratios, and risk factors. Make sure they align with your investment strategy and risk tolerance before adding them to your portfolio.

I do not recommend you to add more funds in your portfolio as you already have too many funds which you need to cut down on.

Disclaimer:
• I have just no idea about your age, future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down.
• Hence, please note that I am answering your question in absolute isolation to other parameters which should definitely be considered when answering a question of this type.
• I recommend you to also consult a good financial advisor who would look at your complete profile in totality before you act on this advice given by me.

Ans: Review of Your Mutual Fund Portfolio
Let's assess your current mutual fund portfolio and provide suggestions to optimize it.

Current Portfolio Breakdown
Baroda BNP Paribas Multi Asset: Rs 5,00,000
SBI Balanced Advantage: Rs 2,00,000
HDFC Manufacturing Fund: Rs 2,00,000
Bandhan Innovation Mutual Fund: Rs 2,00,000
SBI PSU Fund: Rs 1,00,000
SBI Next 50 Index Fund: Rs 1,00,000
HDFC Multicap Fund: Rs 2,00,000
SIP in SBI 250 Small Cap Index Fund: Rs 3,000 per month
SIP in ICICI Bluechip Fund: Rs 3,000 per month
SIP in Motilal Oswal Midcap Fund: Rs 3,000 per month
Analysis and Evaluation
Diversification:

Your portfolio includes a mix of equity, balanced, and sector funds.
This diversification helps in risk management.
Sector Funds:

HDFC Manufacturing Fund and SBI PSU Fund are sector-specific.
Sector funds can be risky due to lack of diversification.
Index Funds:

SBI Next 50 Index Fund and SBI 250 Small Cap Index Fund are passive investments.
Index funds do not outperform the market and lack active management.
Balanced Advantage Fund:

SBI Balanced Advantage Fund balances equity and debt.
This provides stability during market volatility.
Multicap Funds:

HDFC Multicap Fund offers diversification across large, mid, and small caps.
This reduces concentration risk.
Recommendations
Reduce Sector Exposure:

Consider reducing your investment in sector funds like HDFC Manufacturing and SBI PSU Fund.
These funds are less diversified and can be volatile.
Shift from Index Funds to Actively Managed Funds:

Index funds like SBI Next 50 and SBI 250 Small Cap Index Fund lack active management.
Actively managed funds can potentially offer better returns.
Increase Exposure to Actively Managed Funds:

Increase investment in actively managed funds such as multicap, large-cap, and mid-cap funds.
These funds are managed by professionals who can make informed investment decisions.
SIP in Balanced and Multicap Funds:

Continue your SIP in ICICI Bluechip and Motilal Oswal Midcap funds.
Consider adding more SIPs in balanced advantage or multicap funds.
Diversify Across Asset Classes:

Continue investing in multi-asset funds like Baroda BNP Paribas Multi Asset.
These funds offer a mix of equity, debt, and other assets for better diversification.
Suggested Portfolio Allocation
Equity Funds:

Large Cap Funds: 30% of your portfolio.
Mid Cap Funds: 20% of your portfolio.
Multicap Funds: 25% of your portfolio.
Reduce sector funds to 10% of your portfolio.
Balanced Funds:

Balanced Advantage Funds: 15% of your portfolio.
Multi-Asset Funds:

Continue with Baroda BNP Paribas Multi Asset.
Final Insights
Your portfolio is well-diversified but can be optimized by reducing sector-specific and index funds. Increase allocation to actively managed large, mid, and multicap funds. This strategy will potentially enhance returns and manage risks better. Regularly review and rebalance your portfolio to stay aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in