I do a regular investment per month of Rs 8000 as SIP in mutual funds. The fund currently I am holding are: 1. HDFC Top 100 Fund -Rs 2000 2. ICICI prudential value discovery fund -Rs 1000 3. ICICI prudential blue chip fund - Rs 1000 4. HDFC...

I do a regular investment per month of Rs 8000 as SIP in mutual funds. The fund currently I am holding are:

1. HDFC Top 100 Fund -Rs 2000
2. ICICI prudential value discovery fund -Rs 1000
3. ICICI prudential blue chip fund - Rs 1000
4. HDFC Hybrid equity fund - Rs 1000
5. SBI blue chip fund - Rs 1000
6. SBI Small cap fund - Rs 1000
7. Mirae asset large cap fund - Rs 1000

I have invested Rs 214,372 till now and my market value is Rs 230,213 which means my annual return is 8.8 per cent. Shall I continue to invest in the above fund or shall I switch to some other better fund as per your advice and what will be my capital if I continue to invest for next 7 years as my current age is 43 years and I wish to invest till my age reach 50.

Name of the Fund	Category	RankMF Star Rating
Anoop Adhikari
1. Hdfc Top 100 Fund -Rs 2000	Equity - Large Cap Fund	4
2. Icici prudential value discovery fund -Rs 1000	Equity - Value Fund	3
3. Icici prudential blue chip fund- Rs 1000	Equity - Large Cap Fund	3
4. Hdfc Hybrid equity fund - Rs 1000	Hybrid - Aggressive Hybrid Fund	5
5. SBI blue chip fund - Rs 1000	Equity - Large Cap Fund	3
6. SBI Small cap fund - Rs 1000	Equity - Small cap Fund	3
7. Mirae asset large cap fund - Rs 1000	Equity - Large Cap Fund	4

Ans: You may please continue with 4 and 5 star schemes; for the rest you can consider these:

Equity - Large Cap Funds:

LIC MF Large Cap Fund-Growth
Axis Bluechip Fund-growth

Equity - Small cap Fund:

Kotak Small Cap Fund – Growth
Axis Small Cap Fund – Growth

Equity - Value Fund:

Tata Equity P/E Fund (Growth Option)
UTI Value Opportunities Fund- Growth Option
L&T India Value Fund Growth Option

Ans: You have done a good job by investing regularly through SIPs in different categories of mutual funds. Staying invested for five years shows patience and discipline. This habit is the real strength of wealth creation. Let us assess your portfolio in a structured way and explore what can be improved.

» Assessment of Your Current Portfolio

Your portfolio covers small-cap, mid-cap, and large-cap categories. This gives you exposure across different market segments. That is a positive start.

The large-cap fund brings stability. It invests in established companies that usually give steady growth.

The mid-cap fund offers a balance between growth and stability. It can grow faster than large-cap but has slightly higher risk.

The small-cap fund adds aggressive growth potential. It carries higher volatility but can deliver strong long-term gains.

Since you are 39, you have time on your side. The equity exposure you have taken through these funds is suitable for wealth creation over the long term.

» Performance and Holding Period Analysis

Five years is a decent period, but equity funds ideally need longer. Especially small-cap and mid-cap funds perform better when held for 7 to 10 years.

Your first two funds have completed about five years. You can start evaluating their performance against their respective benchmark indices and category averages.

If both are giving above-average returns compared to peers, continue them.

If any fund has underperformed for more than three years continuously, you can consider a gradual exit.

The last fund has been running only for 18 months. It is too early to judge. All equity funds go through short-term ups and downs. So, stay invested at least for 5 to 7 years before making any change.

» Importance of Staying Invested

Mutual fund SIPs work best through compounding and rupee-cost averaging. By continuing your SIPs, you buy more units when markets are down and fewer when markets are high. Over time, this smooths out the average cost.

Stopping or switching frequently disturbs this process. Equity wealth creation takes time. Even good funds need market cycles to prove their strength.

Therefore, do not be influenced by short-term volatility. Continue investing with patience unless your funds are consistently lagging behind their category peers.

» Portfolio Diversification and Overlap Check

Although you have selected three different categories, all are from one fund house. Having all schemes from the same AMC is not always ideal.

Each AMC follows its own investment style and risk approach. When all funds belong to one AMC, there may be portfolio overlap. The same stocks might appear in different schemes.

This reduces the benefit of diversification. A Certified Financial Planner can help check portfolio overlap and suggest diversification across different AMCs.

If the overlap is high, consider shifting one or two schemes to other reputed fund houses with consistent long-term track records. This helps reduce concentration risk.

» Reviewing Fund Allocation

Your risk capacity and financial goals decide how much you should allocate to large, mid, and small-cap funds.

If you need stability, increase the weightage of large-cap funds.

If you want long-term growth, keep some exposure to mid and small-cap.

Avoid overexposure to small-cap because it fluctuates sharply in volatile markets.

A balanced combination might look like this –
Large-cap 40%, Mid-cap 35%, Small-cap 25%.

However, this ratio must align with your personal goals, investment horizon, and risk tolerance.

» Rebalancing Strategy

Periodic rebalancing is important to control risk and capture gains. Over time, one fund category may grow faster and disturb your target ratio.

For example, if small-cap grows sharply, it can form a larger part of your portfolio. In such cases, shift some amount from small-cap to large-cap or mid-cap to maintain balance.

Rebalancing once a year is enough. It helps protect gains and ensures your portfolio remains aligned with your goals.

» Importance of Regular Funds and Role of Certified Financial Planner

You have invested in regular plans through a distributor. That is a wise move. Many investors think direct plans are cheaper. But they ignore the value of professional guidance.

Regular plans come with ongoing support, periodic reviews, and rebalancing help from a Certified Financial Planner.

Direct plans leave you alone. You have to track performance, do rebalancing, and handle taxation yourself.

Regular plans help avoid emotional decisions during market swings. The planner keeps your investments aligned with goals and risk profile.

Over time, the planner’s advice adds more value than the small expense difference between direct and regular plans.

» When to Switch Funds

Switching should not be based on short-term performance or market news. Switch only if –

The fund is consistently underperforming its category peers for more than three years.

The fund has a major change in management or investment philosophy.

The fund’s risk level no longer suits your profile.

Before switching, always consult a Certified Financial Planner. They can analyse the rolling returns, consistency, and risk-adjusted performance of each fund. This ensures your decisions are data-based, not emotional.

» Aligning SIPs with Your Goals

Every SIP should have a clear purpose. It could be for retirement, children’s education, or wealth creation. When goals are defined, you can decide how long to stay invested and what risk to take.

If your SIPs are not linked to specific goals, start doing that now. It gives you better clarity and helps you avoid premature withdrawals.

Also, the investment horizon for each goal should decide your fund category:

Short-term goals (less than 3 years): Keep in debt or liquid funds.

Medium-term goals (3 to 5 years): Use balanced or large-cap funds.

Long-term goals (above 5 years): Use mid-cap and small-cap funds.

» Taxation Aspect

Under the new rules, long-term capital gains from equity mutual funds above Rs 1.25 lakh per year are taxed at 12.5%. Short-term gains are taxed at 20%.

This makes it even more important to stay invested for longer. The longer you stay, the lower the tax impact on your returns due to compounding.

Avoid unnecessary redemptions or switches. Each transaction can trigger tax liability.

» Behavioural Discipline

One of the biggest success factors in mutual fund investing is behaviour. Most investors do not lose because of bad funds. They lose because of bad timing or panic selling.

When markets fall, continue your SIPs. You are buying units at cheaper prices. When markets recover, your gains multiply faster.

Keep emotions aside and stick to your plan. The market rewards patience and consistency.

» Role of Periodic Review

Review your portfolio once or twice a year. Do not check daily or weekly. That leads to unnecessary anxiety.

In each review, assess three things –

Fund performance compared to category average.

Asset allocation alignment with goals.

Any changes in your financial situation.

Based on this, make minor adjustments if needed. But do not overhaul your portfolio frequently.

» Benefits of Staying with Actively Managed Funds

Actively managed funds have professional fund managers who study companies, sectors, and valuations. They can make changes when markets shift.

In comparison, index funds only copy the index. They cannot react to market conditions. When the market falls, index funds fall equally. They also carry concentration risk because the top few stocks dominate the index weight.

Actively managed funds have the flexibility to hold cash, shift sectors, and protect downside risk. Over long periods, well-managed active funds often outperform index funds after tax.

So, staying with actively managed funds like yours is a better strategy for wealth creation.

» Market Outlook and Investment Tenure

Equity markets go through cycles. Sometimes they move sideways for a few years, and then deliver strong growth later.

Your small and mid-cap funds will need time to show their true potential. Historically, they outperform large-caps when held for 8 to 10 years.

Since you are 39, you can easily continue your SIPs for another 10 to 15 years. That will align well with long-term goals such as retirement or children’s education.

» Contingency and Liquidity Planning

Ensure you have an emergency fund of 6 to 9 months of expenses. Keep it in liquid or ultra-short-term funds.

This protects you from redeeming your equity investments during market corrections. Equity SIPs should never be used for short-term needs.

Having this buffer ensures your long-term investments grow undisturbed.

» Insurance and Protection Planning

Before continuing or increasing your SIPs, make sure your family is well protected.

Take adequate term life insurance.

Have health insurance for the entire family.

If you already have any investment-cum-insurance or ULIP policies, surrender them and reinvest in mutual funds for better returns and flexibility.

Pure protection plans are cost-effective and leave more money available for investments.

» Future Growth Approach

If your income increases, raise your SIPs by at least 10% every year. This step-up approach helps you build wealth faster.

Also, as you get closer to your goals, gradually move from small-cap and mid-cap to large-cap or balanced funds. This protects gains from market volatility.

Always plan these transitions with a Certified Financial Planner to ensure your portfolio remains goal-aligned and tax-efficient.

» Finally

Your investment journey has started on the right path. You have shown consistency and discipline. Do not lose that focus.

Continue your SIPs for more years, review annually, and avoid frequent switches. Diversify across AMCs if needed, and align each SIP with a goal.

Actively managed regular funds, reviewed and guided by a Certified Financial Planner, can help you achieve strong, steady, and tax-efficient long-term growth.

Stay patient, stay invested, and let time compound your wealth.

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

https://www.youtube.com/@HolisticInvestment

Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment