SIR, My portfolio includes, ICICI Prudential Bharat Consumption Fund Growth-5000pm, Templeton India EQUITY INCOME FUND - Growth-5000pm, Tata Hybrid Equity Fund Regular Plan - Growth-5000pm, HDFC Flexi Cap Fund - Regular Plan - Growth-10000pm, PGIM India Midcap Opportunities Fund - Regular Plan - Growth-10000pm, SUNDARAM MULTI CAP FUND REGULAR GROWTH-10000pm, Canara Robeco Emerging Equities - Regular Growth-5000pm. I am 46 year old and investing in mutual funds last 1.5 years. Pl. review my portfolio.

Ans: Hi Amit and thanks for writing to me. The funds you invest in are good funds and you can continue to invest in them.

Ans: Dear Rahul
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.

My recommendation only on the past performance and anticipated future outlook of your funds is as below:-
1. Parag Parikh flexicap - Good fund. Continue.
2. Mirae Asset mid cap fund - Good fund. Continue.
3. Axis small cap fund - As below
4. Canara robeco small cap – Too many small cap funds. Retain this one. Switch out others unless ready to take very high risk in portfolio.
5. Quant small cap – As above
6. PGIM mid cap fund - Good fund. Continue.

However, do note that you are taking a very high risk in your portfolio with 2 midcap and 3 small cap funds. Do consult a financial advisor to rebalance your portfolio.

Ans: ou have invested Rs 30,000 across multiple mutual funds. Your portfolio includes small-cap, flexi-cap, infrastructure, ELSS tax saver, and gilt funds. This diversified approach is commendable as it spreads risk and capitalises on different market segments.

Small Cap Funds
You have allocated funds to three small-cap mutual funds. Small-cap funds offer high growth potential but come with higher risk. It is crucial to monitor their performance regularly. Ensure you are comfortable with the volatility associated with small-cap investments.

Flexi Cap Fund
The flexi-cap fund in your portfolio provides flexibility to invest across market capitalizations. This fund is a good choice as it balances risk and returns. Flexi-cap funds can adapt to market changes, making them a robust component of your portfolio.

Infrastructure Fund
Your investment in an infrastructure fund targets a specific sector with long-term growth potential. Infrastructure projects are crucial for economic development, which can lead to substantial returns. However, sector-specific funds can be volatile, so keep an eye on the performance and market conditions.

ELSS Tax Saver Fund
The ELSS tax saver fund is a smart choice for tax benefits under Section 80C of the Income Tax Act. It has a lock-in period of three years, which encourages long-term investment. ELSS funds also have the potential for high returns due to their equity exposure.

Gilt Fund
The gilt fund in your portfolio invests in government securities. These funds are low-risk and provide stable returns. Gilt funds are suitable for conservative investors seeking safety and predictable income. They help balance the risk in your overall portfolio.

Assessment of Direct Growth Funds
You have chosen direct growth funds, which have lower expense ratios compared to regular funds. This can lead to higher returns over time. However, direct funds require more active management and monitoring. Consider consulting with a Certified Financial Planner for guidance.

Evaluating Portfolio Allocation
Your portfolio is diversified across different fund types, which is excellent for risk management. However, having multiple small-cap funds might increase your risk exposure. Diversifying into different sectors and market caps can provide a more balanced approach.

Recommendations for Adjustments
Consider reducing the number of small-cap funds to avoid overexposure to high risk. Adding more balanced funds or large-cap funds can provide stability. Reviewing the performance of sector-specific funds regularly is also essential.

Conclusion
Your investment choices are diversified, which is a strong point. Monitoring performance and making adjustments as needed can enhance your portfolio's potential. Consulting with a Certified Financial Planner can provide personalized advice tailored to your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in