Dear Omkeshwar Singh, I have following monthly SIP (all in Growth option) up to Jun 2025:

Sir, after SIP completion I am planning to hold all these for at least six more years. Do you think my portfolio needs re-adjustment?

1. Axis Bluechip @ 6000
2. Axis Focused 25 @ 12000
3. Axis Smallcap @7000
4. DSP Equity & Bond @ 7000
5. Nipon Smallcap @ 7000
6. Mirae Assets Emerging Bluechip @ 15000
7. Invesco India Contra @ 5000

Ans: Considering your current SIP portfolio, you may consider diversifying further across different asset classes and investment themes. You could explore adding SIPs in sectors like healthcare, consumer goods, or emerging markets for diversification. Additionally, consider increasing exposure to mid-cap or small-cap funds for potential higher returns over the long term. Reviewing your portfolio periodically with a financial advisor can help ensure it remains aligned with your financial goals and risk tolerance. Also, consider increasing your SIP amount gradually to maximize wealth accumulation over time.

Ans: make this horizon to 20yrs and you will make good wealth

Ans: Understanding Your Investment Goals
You have a well-structured SIP portfolio with a diverse range of mutual funds and plans. Your goal is to invest and hold for 15 more years, which is a commendable strategy for long-term wealth creation. The mix of funds you've chosen indicates a balanced approach towards growth and security.

Assessment of Current Portfolio
Your portfolio consists of various mutual funds, including retirement funds, mid-cap, large-cap, multi-cap, and sector-specific funds. This diversity helps in spreading risk across different sectors and market capitalizations. Investing Rs. 10,000 per month in each of the retirement funds is a sound decision, as these funds are designed to provide stability and growth over the long term.

Evaluating Fund Types
You have included mid-cap and large-cap funds, which offer growth potential and relative stability. Mid-cap funds are known for their high growth potential but come with higher volatility. Large-cap funds provide stability and consistent returns over time. Your investment in multi-cap and flexi-cap funds ensures flexibility in adjusting the portfolio according to market conditions.

Regular vs. Direct Funds
You have opted for regular plans instead of direct funds, which is beneficial. Regular funds come with the advantage of professional advice and management. A Certified Financial Planner (CFP) can help you make informed decisions and provide insights that are not easily accessible through direct funds.

Sector-Specific Investments
Your portfolio includes sector-specific funds like the manufacturing and infrastructure fund. These funds can provide high returns when their respective sectors perform well. However, they also come with higher risk if the sector faces downturns. Balancing these with more stable funds is a good strategy.

Child-Specific Investments
Investing in a children's fund is a thoughtful decision. These funds are designed to provide long-term growth and cater to future educational and other needs of your children. Ensuring a regular investment in these funds will secure your child's future financial needs.

ULIP and Retirement Funds
Your inclusion of a ULIP plan with a mid-cap momentum fund and various retirement funds shows a balanced approach. ULIPs combine insurance with investment, providing dual benefits. However, they often come with higher charges. Evaluating the performance and costs associated with ULIPs regularly is essential.

Reviewing Fund Performance
Regularly review the performance of your funds. Compare their returns with benchmark indices and peer funds. This helps in identifying underperforming funds and making necessary adjustments.

Risk Management
Your portfolio shows a balanced approach to risk with investments in large-cap, mid-cap, and multi-cap funds. Adding dynamic asset allocation funds helps in adjusting the portfolio according to market conditions, further managing risk effectively.

Recommendations for Portfolio Enhancement
Maintain Portfolio Balance: Ensure a mix of equity and debt funds to balance risk and return. Consider including more dynamic asset allocation funds if market volatility increases.

Monitor Sector Exposure: Regularly review sector-specific funds to avoid overexposure to any single sector. Diversify further if necessary.

Evaluate ULIP Performance: Regularly assess the performance and charges associated with ULIPs. Ensure they align with your financial goals.

Stay Informed: Keep yourself updated with market trends and seek professional advice from a Certified Financial Planner to make informed decisions.

Flexibility in Investments: Be open to adjusting your portfolio based on market conditions and life changes. Regularly rebalance your portfolio to maintain the desired asset allocation.

Appreciating Your Strategy
Your approach to long-term investment through SIPs is commendable. Regular investments and a diversified portfolio are key to achieving financial stability and growth. Your thoughtful inclusion of children's funds and retirement plans shows a strong commitment to securing your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Dear Nirav,

Greetings! I appreciate the detailed information you've shared about your investment journey. It's great to see your proactive approach to achieving your financial goals. You've done well by starting early and increasing your SIP contributions annually.

Current Portfolio Assessment
Your current SIPs are as follows:

Axis Bluechip: Rs. 12,500 per month
Mirae Asset Large and Midcap: Rs. 14,000 per month
Kotak Flexicap: Rs. 15,000 per month
Nippon India Small Cap: Rs. 16,000 per month
With a current portfolio value of Rs. 38.2 lakhs and an impressive 26% annual return, you're on a solid path toward your goal of Rs. 5 crores by 2035.

Evaluating Underperforming Funds
You mentioned that Axis Bluechip and Kotak Flexicap are underperforming. This can be concerning, but it's essential to assess the reasons and decide the best course of action.

Axis Bluechip Fund
Bluechip funds typically invest in large-cap companies, which are stable but might not offer high growth compared to mid or small-cap funds. If Axis Bluechip isn't meeting your expectations, consider the following steps:

Performance Comparison: Compare its performance with other large-cap funds over the same period.
Market Conditions: Large-cap funds may underperform during specific market cycles but provide stability in volatile times.
Fund Management: Evaluate the fund manager's track record and the fund's expense ratio.
Kotak Flexicap Fund
Flexicap funds invest across market capitalizations. If Kotak Flexicap isn't performing well, consider:

Diversification: Ensure the fund's sectoral and stock diversification aligns with your risk appetite.
Historical Performance: Look at its long-term performance compared to peers.
Economic Factors: Consider macroeconomic factors that might be affecting its performance.
Strategic Moves
Given your concerns, here are some strategies:

Stopping SIPs and Switching
If you decide to stop SIPs in underperforming funds, keep the units intact. This ensures you benefit from any future upturns.

New SIPs: Start SIPs in funds with better performance and strong management.
Fund Houses: You can choose funds from different fund houses to diversify further.
Systematic Transfer Plan (STP)
STP allows transferring a fixed amount from one fund to another periodically. This helps in averaging costs and reducing risk.

Within Same Fund House: Transferring within the same fund house might reduce exit load and tax implications.
Example Funds: Look for funds with consistent performance and strong management teams.
Fund Examples for Consideration
While I won't name specific schemes, here's what to look for:

Large-Cap Funds: Consistent performers with a low expense ratio.
Flexicap Funds: Funds with flexible allocation strategies and good historical returns.
Mid-Cap and Small-Cap Funds: High growth potential but be mindful of higher volatility.
Benefits of Regular Funds
You mentioned investing in direct funds. While direct funds have lower expense ratios, regular funds through a Certified Financial Planner (CFP) offer:

Professional Guidance: CFPs provide tailored advice based on your financial goals and risk tolerance.
Holistic Planning: They help in comprehensive financial planning, including tax and estate planning.
Active Monitoring: Regular reviews and adjustments based on market conditions and your changing needs.
Final Insights
Nirav, your disciplined investment approach and regular SIP increments are commendable. Addressing underperforming funds and considering strategic reallocation can enhance your portfolio's performance. Remember to review your portfolio periodically and consult a Certified Financial Planner for personalized advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in