I am planning to invest 10,000 per month as SIP, i already invest 2000 per month in Mirae Asset Large Cap, SBI Small cap & Parag Parikh Flexi Cap

Ans: Portfolio Expansion Strategy

Expanding your investment portfolio with an additional SIP of Rs 10,000 per month is a prudent step towards long-term wealth creation. Let's evaluate how to best allocate this amount.

Current Portfolio Review

Your existing SIP investments in Mirae Asset Large Cap, SBI Small Cap, and Parag Parikh Flexi Cap demonstrate a balanced approach across different market segments. This diversification helps mitigate risk and capture growth opportunities.

Identifying New Investment Avenues

Given your current portfolio composition, here's a strategic approach to allocate the additional Rs 10,000 SIP:

Diversification:

Aim to further diversify your portfolio across different fund categories to spread risk and enhance potential returns.
Consider allocating a portion of the new SIP amount to funds with exposure to sectors or themes that complement your existing holdings.
Risk Management:

Assess your risk tolerance and investment horizon to determine the appropriate allocation to different asset classes.
Ensure that the new funds selected align with your risk profile and long-term financial goals.
Research and Selection:

Conduct thorough research or seek advice from a Certified Financial Planner to identify suitable funds that match your investment objectives.
Look for funds with a consistent track record of performance, experienced fund managers, and robust investment processes.
Asset Allocation:

Maintain a balanced asset allocation strategy that aligns with your risk appetite and financial objectives.
Allocate the new SIP amount across various fund categories such as large-cap, mid-cap, small-cap, and thematic funds based on your risk-return preferences.
Regular Monitoring:

Regularly monitor the performance of your portfolio and the individual funds to ensure they remain in line with your investment goals.
Rebalance the portfolio periodically to realign asset allocation and mitigate any deviations from the desired investment strategy.
Conclusion

Expanding your SIP investments by Rs 10,000 per month presents an opportunity to further diversify your portfolio and potentially enhance long-term wealth accumulation. By adopting a disciplined approach to research, selection, and monitoring, you can build a well-rounded investment portfolio that aligns with your financial objectives and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in