Q5. In case I have to rebalance which fund should i stop without loss on exit load and where would u advice more SIP? Would it be in Parag Parikh Flexicap or Axis Blue Chip fund? 

Ans: Hello RP, I guess you have already maintained well diversified portfolio. With your age factor, yes it would required now to reduce your portfolio risk to low risk appetite categories like Large Cap fund or balanced advantage funds.

Hence, I will suggest you to stop the sips with high risk schemes other than large cap fund.

Ans: a - compounding will get affected but since performance of the funds which i have advised to stop , is now not good it makes sense in stopping sip and exiting when you get good profit
b - yes stop sip n exit form them
b - with proceeds you get after selling calculate with your CA tax payable and pay the tax and remaining amount you can invest in ppfas liquid fund and start STP in PPFAS flexi cap
c - for 5 crores to be achieved you need to increase your sip and / or top it with lumsum investmenst in MF

Ans: Based on your portfolio composition and investment horizon, it seems you've chosen a diversified mix of equity funds with a focus on small and mid-cap exposure along with a stable large-cap fund. Adding a flexicap fund further diversifies your portfolio.

It's generally advisable to review your portfolio periodically, considering market conditions, fund performance, and any changes in your financial goals or risk tolerance. You've already made some changes by stopping Axis Bluechip and Mirae Tax saver and adding Parag Parikh Flexicap.

Continuing with this approach, you may periodically assess the performance of your existing funds and consider adding or removing funds based on their performance and alignment with your investment objectives. You could also explore other categories like index funds or hybrid funds to further diversify your portfolio, depending on your risk appetite and financial goals.

Additionally, regularly reviewing and adjusting your allocation between debt and equity based on your risk tolerance and investment horizon is a prudent approach to maintain balance in your portfolio. Keep monitoring your portfolio and consult with a financial advisor if needed to ensure it remains aligned with your financial goals.

Ans: Your portfolio reflects diversity across categories. However, optimisation is needed to align with financial goals. Below is a detailed review:

SIPs in Actively Managed Regular Plans
1. ABSL Frontline Equity (Rs 1000)

Returns: 14.77% since 2014
Assessment: Decent long-term performer in large-cap space. Consider retaining this SIP for stability.
2. Bandhan Flexicap (Rs 2000)

Returns: 13.62% since 2014
Assessment: Performance consistent, but alternatives may offer better opportunities. Explore other flexicap funds with dynamic management.
3. Sundaram Midcap (Rs 1000)

Returns: 18.64% since 2014
Assessment: Impressive returns; retain for potential in midcap growth.
4. Sundaram Large & Midcap (Rs 2000)

Returns: 16.01% since 2014
Assessment: Balanced fund delivering good returns; recommend continuing.
5. ICICI Pru Bluechip (Rs 1000)

Returns: 16.65% since 2014
Assessment: Steady performer in large-cap category. Retain for portfolio stability.
6. Nippon India Smallcap (Rs 1000)

Returns: 33.31% since 2021
Assessment: High returns in a short time; small-cap investments suit higher risk tolerance. Consider continuing if goal aligns.
7. Tata Smallcap (Rs 1000)

Returns: 32.14% since 2021
Assessment: Small-cap volatility is high. Retain only if long-term horizon exceeds 7-10 years.
8. Axis Bluechip (Rs 1000)

Returns: 14.20% since 2021
Assessment: Underperforming in the large-cap category; better options are available.
SIPs in Direct Plans
9. Nippon India Smallcap (Rs 4000)

Returns: 36.09% since 2023
Assessment: Excellent short-term returns. Evaluate if overlapping with your existing small-cap holdings.
10. Quant Smallcap (Rs 8000)

Returns: 29.87% since 2023
Assessment: Volatility typical of small-cap funds; ensure no over-allocation to this segment.
11. Kotak Emerging Equity (Rs 5000)

Returns: 34.68% since 2023
Assessment: Promising returns; align with your risk and time horizon before continuing.
12. ICICI Focused Equity (Rs 2000)

Returns: 33.75% since 2023
Assessment: Focused equity funds bring concentration risks. Consider reducing allocation to balance risk.
13. ICICI Large & Midcap (Rs 2000)

Returns: 29.86% since 2023
Assessment: Diversified strategy suits mid-term goals. Consider holding for stability.
14. Quant Midcap (Rs 4000)

Returns: 23.39% since 2023
Assessment: Reasonable performance in a short period. Retain for midcap exposure.
Key Recommendations
Surrender Direct Funds: Direct plans lack the professional guidance of an MFD or CFP. Transition to regular plans to gain insights, periodic review, and holistic advice.

Consolidate Small-Cap Investments: You hold multiple small-cap funds. Retain 1-2 for high-risk, high-reward potential. Allocate surplus to other categories.

Replace Underperformers: Axis Bluechip and Bandhan Flexicap are candidates for reallocation. Replace them with actively managed funds showing stronger performance.

Ensure Category Allocation: Maintain a balanced allocation between large-cap, midcap, and small-cap funds.

Additional Insights
Tax Efficiency: Ensure tax planning aligns with your goals. For equity funds, LTCG above Rs 1.25 lakh attracts 12.5% tax. STCG is taxed at 20%.

Reassess Goals: Match fund selection to financial milestones like retirement, children’s education, or asset creation.

Review Regularly: A portfolio review every six months ensures alignment with financial goals and market conditions.

Final Insights
Your portfolio is diversified but needs fine-tuning. Transition to regular funds for professional guidance. Consolidate small-cap holdings to reduce overlap. Focus on long-term wealth creation through a balanced strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment