I have following SIP from last 4 years and would like to know whether to switch to any other funds? I'm 34 now and want to continue investing in MF for the next 10 to 15 years. 

1. Axis Long Term Equity Fund - Rs 5000 Monthly

2. Aditya Tax Relief 96 - Rs 500 (It was 3K per month, but now reduced to 500) 

3. Axis Blue chip Fund - Rs 5000

4. LT Mid cap Fund - 3000 

5. Kotak Emerging Equity Fund - 5000 

6. Mirae Tax Save - Rs 1000 

7. Axis Small Cap Fund - Rs 1000 

8. SBI Small Cap Fund - Rs 500 

Ans: In Large Cap: Axis Bluechip Fund - Growth is a better option

Too many Sectoral Funds; the risk of concentration is high; instead diversified funds are better option.

1. UTI Equity Fund – Growth
2. DSP mid cap Fund – Growth
3. Tata Large & Mid Cap Fund - Growth
4. Canara Robeco Emerging Equities – Growth

Above funds have decent exposure to Pharma, Banking and Technology

Rest of the funds are okay.

Ans: You may continue with funds with 4 star ratings.

Top 2 Equity value funds are (4-Star rated)

• Tata Equity PE fund
• UTI value opportunity funds

Ans: Hello Ashwani, I can see over diversification with your current investments with 12k sip amount. I would suggest you to consolidate your mf investments and reshuffle the portfolio.

Ans: Hello Rajesh Khanna. Based on the current diversification of your portfolio, I would recommend reconsidering HDFC Top 100 fund sip. As an additional option for 25 lakh investments, you may consider midcap, smallcap, flexicap, and large-cap funds.

Furthermore, you can invest via STP instead of the lump sum in order to benefit from future market volatility.

Ans: Your mutual fund portfolio has a mix of large-cap, large- and mid-cap, multi-cap, mid-cap, and small-cap funds. This diversification strategy is a good approach, especially for a beginner. Your monthly SIP of Rs. 20,000 is distributed effectively across different categories, aligning with long-term investment principles. However, periodic reviews are essential to ensure optimal performance and alignment with your goals.

Here’s a detailed analysis and guidance:

Assessment of Current SIP Investments
Kotak Bluechip Fund (Rs. 5,000):

Large-cap funds provide stability and are less volatile.

Retain this fund if its performance is consistent with its benchmark and category peers.

Tata Large & Mid Cap Fund (Rs. 4,000):

These funds combine stability and growth by investing in large- and mid-cap stocks.

Review its performance and continue if it is competitive within its category.

Invesco India Multi Cap Fund (Rs. 4,000):

Multi-cap funds provide diversification across market caps.

If its returns are below average for its category, consider switching to a better-performing fund.

PGIM India Mid Cap Fund (Rs. 4,000):

Mid-cap funds offer higher growth potential but can be volatile.

Retain this fund if your risk tolerance supports it and its performance is consistent.

Axis Small Cap Fund (Rs. 3,000):

Small-cap funds are high-risk, high-reward investments and perform well over long horizons.

Continue investing if your risk appetite aligns and its returns remain satisfactory.

Steps to Streamline Your Portfolio
Avoid Duplication:

Review overlapping funds in similar categories like large-cap and large- and mid-cap funds.

Consolidate investments in one or two strong performers within a category.

Minimise Small-Cap Exposure:

Limit small-cap investments to 10-15% of your portfolio.

This reduces risk and ensures stability, especially closer to retirement.

Focus on Core Funds:

Increase allocation to large-cap and multi-cap funds for stability and consistent returns.

These funds form the foundation of a robust portfolio.

Track Fund Performance Regularly:

Assess fund performance against benchmarks and peer funds.

Underperforming funds can be replaced with better options.

Diversify Across Investment Styles:

Your portfolio can include flexi-cap or balanced advantage funds.

These funds adjust their asset allocation dynamically based on market conditions.

Addressing Concerns from Friends and Relatives
While advice from peers is valuable, rely on objective criteria for fund selection.

Performance, risk-adjusted returns, and consistency are more critical than temporary trends.

Avoid switching funds hastily; review long-term performance and investment goals first.

Suggestions for Optimisation
Consider Balanced Funds:

Add hybrid or balanced advantage funds for reduced risk and consistent returns.

These funds offer stability during market downturns.

Evaluate Debt Funds:

Debt funds can complement your portfolio by providing stability and liquidity.

These funds are especially useful for goals with shorter horizons.

Tax Efficiency:

LTCG above Rs. 1.25 lakh on equity mutual funds is taxed at 12.5%.

Plan redemptions and switches carefully to minimise tax liability.

Staying Disciplined and Focused
Stick to your long-term investment horizon of 8–10 years.

Avoid chasing high returns or switching funds frequently based on short-term trends.

Monitor your portfolio annually to ensure alignment with goals.

Final Insights
Your portfolio shows good intent and initial planning. With minor adjustments and disciplined investing, it can achieve your financial goals. Reduce overlapping funds, optimise tax efficiency, and focus on stability as you near retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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