SIP Details ongoing since last 4 years, should I continue with the same schemes or request your kind suggestion / advice. SIP amount of Rs.3000 per month in each of the MF.

1) Birla Sun Life Pure Value Fund - Growth
2) Canara Robeco Emerging Equities - Growth
3) DSP Black Rock Income Opportunities Fund - Growth
4) DSP Black Rock Small And Mid Cap Fund - Growth
5) Franklin India Prima Fund - Growth
6) Kotak Emerging Equity Scheme - Regular Plan - Growth
7) L&T Emerging Businesses Fund - Regular Plan - Growth
8) L&T India Value Fund - Regular Plan - Growth
9) SBI Magnum Midcap Fund - Growth
10) Sundaram Select Midcap – Growth

Ans: No Change is required, please continue

Ans: These are better options:

1. CANARA ROBECO EQUITY HYBRID FUND - GROWTH

2. Axis ESG Equity Fund – Growth

3. Motilal Focused 25 Fund – Growth

4. ICICI Pru US Bluechip Equity Fund – Growth

5. UTI Flexi Cap fund – Growth

6. DSP Quant Fund – Growth

Ans: Please continue. Some portion of investments can be in small-cap, mid-cap and ELSS.

 

Ans: For the given total amount of investment being made monthly, you don't need to invest in so many schemes. Just one fund would be more than enough. It can be an ELSS if you have tax-saving requirements. Or it can be a simple flexicap fund as your existing portfolio seems to be a mix of large, mid and small-cap funds.

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.

Ans: Evaluating Your SIP Portfolio
Current SIP Allocation
You have a diverse SIP portfolio. Each SIP is Rs 2,500 monthly. Here's a look:

Nippon India Vision Fund Growth Plan Growth Option

Franklin India Multicap Regular Plan Growth

HDFC Defense Fund Regular Plan Growth

ICICI Prudential Multi Asset Fund Growth

Canara Robeco Multi Cap Fund Regular Growth Plan

HDFC Flexi Cap Fund Regular Plan Growth

Nippon India Growth Fund Growth Plan Growth Option

SBI Large & Midcap Fund Regular Growth

Portfolio Assessment
Your SIP portfolio has eight funds. They cover multiple categories. Here are some insights:

Diversification: Your portfolio is diversified. This reduces risk.

Fund Categories: You have funds in multi-cap, flexi-cap, large & mid-cap, and sectoral. This is good for balanced growth.

Actively Managed Funds vs. Index Funds
You've chosen actively managed funds. This is a good decision. Actively managed funds can outperform the market. Certified Financial Planners can help select the best funds.

Disadvantages of Index Funds
Lack of Flexibility: Index funds cannot change their holdings.

Average Performance: Index funds only match market returns.

Market Risks: Index funds are fully exposed to market downturns.

Regular Funds vs. Direct Funds
Regular funds are better for many investors. Here's why:

Professional Advice: You get advice from Certified Financial Planners.

Convenience: Regular funds are easier to manage.

Better Decision Making: Regular funds help you avoid mistakes.

Suggested Adjustments
You have a good start. But a few adjustments can optimize your portfolio:

Reduce Overlap: Check for overlapping investments in similar funds. Too much overlap can dilute returns.

Sectoral Funds: HDFC Defense Fund is sector-specific. Sectoral funds can be volatile. Consider reducing allocation to sectoral funds.

Focus on Core Funds: Core funds like flexi-cap and multi-cap should form the bulk of your portfolio. They offer stability and growth.

Benefits of Regular Review
Regularly reviewing your portfolio is essential. This ensures alignment with goals and market conditions:

Rebalance Portfolio: Adjust your investments based on performance and goals.

Stay Informed: Keep up with market trends and fund performance.

Certified Financial Planner Advice: Regular consultations with a Certified Financial Planner can provide valuable insights.

Final Insights
Your current SIP portfolio is well-diversified. However, some fine-tuning can enhance its performance. Reduce overlap and focus on core funds. Regular reviews and Certified Financial Planner advice will keep your portfolio on track. Investing through regular funds provides professional guidance and convenience. Avoid sectoral and index funds to minimize risk and ensure better returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in