I read about this service called Ask MF Guru in an article online. I wanted you to please review my existing portfolio & help me design it better to achieve my goals listed below. 

I do realise that my portfolio is not diversified amongst asset classes. I want to start investing in Gold (SGB) on a regular basis. I am 38year old & my risk profile is High for another 10 years. 

Please suggest what amendments I should make & how much more I should invest to achieve my targets. 

Goals :-
Expenses	Time yrs	Amount
Higher Education for Daughter (she is 2)	15	75,00,000
Marriage of Daughter	23	1,00,00,000
Retirement (Myself)	22	25,00,00,000

My current investments & savings:

Current Investments	Monthly	Current Value	Remarks
Axis Long Term Equity Fund (ELSS) (R.)	5,000	1,53,000	SIP ongoing
Mirae Assets Tax Saver Fund (ELSS) (R.)	7,500	3,22,000	SIP ongoing
Quant Active Fund (Flexi Cap) (D.)	5,000	35,000	SIP ongoing
Axis Small Cap Fund Direct-Growth (D.)	5,000	25,000	SIP ongoing
Parag Parikh Flexi Cap Fund (D.)	5,000	20,000	SIP ongoing
PGIM India Flexi Cap Fund (D.)	5,000	24,000	SIP ongoing
Quant Active Fund (Small Cap) (D.)	5,000	23,000	SIP ongoing
Axis Flexi Cap Fund (R.)	2,500	88,000	SIP ongoing
Quant Tax Fund (ELSS) (D.)	3,000	8,000	SIP ongoing
ICICI Prudential Long Term Equity Fund (ELSS) (R.)	4,000	1,87,000	SIP ongoing
Franklin India Focused Equity (R.)	-	2,75,000	SIP Closed
NPS	5,000	75,000	SIP on going
EPF (Employee Contribution)	8,000	13,00,000	On going
FD	-	2,50,000	On going
Stocks	20,000	15,00,000	On going
Cashflow for Emergency	-	5,00,000	On going
Total	80,000	47,85,000

I appreciate your support, thank you. 

Ans: Kindly assign different funds for different goals.

Goal 1: Rs. 75 lakh in 15 years would require monthly investment of Rs. 12500 /-

Goal 2: Rs. 1 cr in 23 years would require a monthly investment of Rs. 5000 /-

Goal 3: Rs. 25 crs in 22 years would require a monthly investment of Rs. 1,40,000 /-

Ans: Please specify the duration (only car duration is given), accordingly planning can be done.

Ans: Given your goal of building a retirement corpus of 2 crores in 10 years and your current portfolio, here are some suggestions:

Increase SIP Contributions: Consider increasing your SIP amounts in high-performing funds like Parag Parikh Flexi Cap and PGIM India Midcap Opportunities Fund, which have shown good potential for long-term growth.

Review and Consolidate: Evaluate the performance of all your funds and consider consolidating your portfolio to fewer, well-performing funds to simplify management and potentially enhance returns.

Focus on Quality: Prioritize funds with strong track records, consistent performance, and experienced fund management teams. Consider adding large-cap and diversified equity funds for stability and balanced growth.

Asset Allocation: Ensure a balanced asset allocation across equity, debt, and gold funds based on your risk tolerance and investment horizon. Reallocate surplus funds strategically to maintain a diversified portfolio.

Regular Review: Monitor your portfolio regularly and make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.

Consider consulting with a financial advisor for personalized advice tailored to your specific circumstances and goals.

Ans: I appreciate your effort in building a structured investment portfolio. You have a good mix of asset classes. However, some refinements can improve returns and risk management.

Key Observations
You have a strong SIP commitment of Rs 1 lakh per month.

Your investment horizon is 7 years, which is medium-term.

Your risk appetite is moderate, but some holdings may not align.

Index funds and ETFs may limit your portfolio’s growth potential.

Issues in Your Current Portfolio
1. Over-Reliance on Index Funds
Index funds provide average market returns.

Actively managed funds can outperform in a 7-year horizon.

Index funds limit downside protection in volatile markets.

2. High Exposure to International Markets
Investing in global ETFs increases currency risk.

Your portfolio already has enough diversification within India.

Removing international exposure can simplify taxation.

3. Overlap in Large-Cap Allocation
Large-cap index funds and flexi-cap funds create redundancy.

A better option is an actively managed large-cap fund.

4. Conservative Hybrid Fund Allocation
Hybrid funds are good for capital preservation, but not for growth.

Your investment horizon is long enough for a pure equity approach.

Reducing this allocation can improve overall returns.

Recommended Portfolio Adjustments
1. Replace Index Funds with Actively Managed Funds
Actively managed funds have historically outperformed index funds.

A well-managed large-cap and large & mid-cap fund will be better.

2. Reduce International Exposure
Exit from the international ETF.

Keep investments in strong Indian equity funds.

3. Optimise Large-Cap and Flexi-Cap Allocation
Replace index-based large-cap funds with top-performing active funds.

Continue flexi-cap investment but monitor fund performance.

4. Increase Mid-Cap and Small-Cap Allocation
Mid-cap and small-cap funds offer higher growth potential.

Increase allocation based on risk comfort.

5. Exit Hybrid Funds for Higher Growth
Shift hybrid fund allocation to mid-cap or flexi-cap funds.

This will ensure better long-term returns.

Suggested New SIP Allocation
Large-Cap Fund: Rs 10,000 (actively managed)

Large & Mid-Cap Fund: Rs 10,000 (actively managed)

Flexi-Cap Fund: Rs 25,000

Mid-Cap Fund: Rs 20,000

Small-Cap Fund: Rs 15,000

Gold ETF: Rs 5,000 (optional for diversification)

PPF and NPS: Continue existing contributions

This new allocation ensures higher growth while managing risk.

Final Insights
Replace index funds with actively managed funds.

Reduce international exposure to avoid currency risks.

Shift hybrid allocation to growth-focused funds.

Increase mid-cap and small-cap exposure for better returns.

Continue PPF and NPS as stable long-term investments.

This approach will improve returns while keeping risk moderate.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Hi Siddhartha,

Overall fund selection looks quite disorganized and overlapping is there. All funds are randomly selected from online recommendations. Keep your funds to a maximum of 3-4 funds - 1 large, 1 mid and 1 small cap; can add HDFC Balanced fund - no more funds.

If you are looking for long term investing with best returns, it would be wise for you to work with a professional advisor. He will work on fund selection as per your profile and monitor the performance periodically.

Hence do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/