Is it right time to book profit in small & mid cap MFs ? If yes, how much?

Ans:

Ans: sell and rather buy some solid , fast growing frontline stock for long term

Ans: Firstly, it's truly heartening to see your commitment to investing and the returns you've achieved reflect that dedication. You've navigated various market conditions, showcasing resilience and an ability to adapt, which is commendable.

Looking at your portfolio, you've embraced a mix of multi-cap, focused equity, small-cap, and blue-chip funds. Each has its unique characteristics and serves a purpose in a diversified portfolio.

As for your future actions, it's essential to reflect on your investment goals. Are you investing for a specific milestone or a long-term horizon? The returns you've achieved are commendable, but what's the story behind these numbers? Understanding the 'why' behind your investments can guide your future decisions.

For your existing funds, consider reviewing their performance against benchmarks and their alignment with your goals. For new investments, ponder on whether they align with your strategy or introduce a new dimension to your portfolio.

In this journey of financial growth, it's not just about numbers but also about aligning your investments with your aspirations and values. A Certified Financial Planner can provide a holistic perspective, ensuring your investments resonate with your life's broader narrative.

Ans: Assessment of Mutual Fund Investments and Recommendations:

Your decision to invest in mutual funds reflects a proactive approach towards building long-term wealth. Let's evaluate your current investment strategy and provide recommendations to ensure you are on the right track.

Current Investment Analysis:

Parag Parikh Flexi Cap: Investing Rs. 30,000 per month in a flexi cap fund like Parag Parikh reflects a balanced approach, allowing exposure to companies across market capitalizations. Flexi cap funds offer flexibility to capitalize on opportunities across market segments, potentially enhancing returns.

Axis Small Cap: Allocating Rs. 35,000 per month to a small-cap fund like Axis Small Cap indicates a willingness to take on higher risk for potentially higher returns. Small-cap funds have the potential for significant growth but also carry higher volatility due to exposure to smaller companies.

Kotak Emerging Equity: Investing Rs. 35,000 monthly in an emerging equity fund like Kotak Emerging Equity aligns with a strategy focused on capitalizing on growth opportunities in emerging sectors and companies. These funds invest in stocks of companies with potential for rapid growth, albeit with higher risk.

Recommendations:

Diversification: While your current investment strategy displays a focused approach, it's essential to ensure adequate diversification across fund categories. Consider diversifying into other categories such as large-cap, multi-cap, or thematic funds to spread risk and capture opportunities across different market segments.

Risk Management: Given the higher risk associated with small-cap and emerging equity funds, it's crucial to assess your risk tolerance and ensure it aligns with your investment horizon and financial goals. Consider rebalancing your portfolio periodically to manage risk exposure effectively.

Regular Review: Regularly review your portfolio's performance and make adjustments as needed to stay aligned with your long-term financial objectives. Monitor the performance of individual funds and assess their consistency in delivering returns relative to their benchmarks and peers.

Professional Guidance: Consider consulting with a Certified Financial Planner (CFP) to evaluate your investment strategy comprehensively. A CFP can provide personalized advice tailored to your financial goals, risk tolerance, and investment horizon, ensuring your portfolio remains on track to achieve your objectives.

Periodic Rebalancing: Periodically rebalance your portfolio to maintain the desired asset allocation and risk profile. Rebalancing involves selling overweight assets and reallocating funds to underweighted ones, ensuring your portfolio remains aligned with your investment objectives.

By implementing these recommendations, you can enhance the effectiveness of your investment strategy and increase the likelihood of achieving your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in