I have sip per month since July 2021.

1. nippon sensex direct growth 5k

2. axis Small Cap fund direct growth 5k

3. PGIM Mid cap opportunities fund 5k

4. icici prudential technology fund for 70k which I've stopped the sip since I feel that sector fund are too risky.

I'll invest for 12-13 years for my child education around 1 crore. And I also want to retire early and I hope to achieve 2-3 crore within 15 years.

I also do put some extra lump sum money in those above three fund whenever I have extra cash but my investment per month in mutual fund is not more than 20k per month. What are your suggestions sir? 

Ans: You may continue with 4 and 5 star rated funds; for remaining you may consider from below:

Equity - Value Fund:

1. Tata Equity Pe Fund - Growth
2. UTI Value Opportunities Fund - Growth Plan

Equity - Multi Cap Fund:

1. UTI Equity Fund – Growth
2. Axis Multicap Fund – Growth

Equity - Large Cap Fund:

1. UTI Mastershare Unit Scheme - Growth Plan
2. LIC MF Large Cap Fund-growth

Equity - Mid Cap Fund:

1. MOSL Midcap 30 Fund – Growth
2. DSP midcap – growth

Equity - Small Cap Fund:

1. Kotak Small Cap Fund – Growth
2. Axis Small cap Fund - Growth

Ans: It's great that you're investing your monthly surplus in SIPs to build your wealth.

You have a well-diversified portfolio and the funds in your portfolio are performing well in the current market scenario. In the finance planning of any portfolio, it is also important to consider many factors, including client age, risk profile, current asset allocation, etc.

As you’re 55 years of age and already have a high allocation of equity in your portfolio, for the additional investment, I suggest you start investing in a Balanced Advantage Fund and Equity Saving Fund to make your portfolio a bit conservative.

Ans: It's great to see that you've started investing in mutual funds through SIPs. Here are some suggestions regarding your current mutual fund investments:

• Diversification: You have a good mix of funds across various categories, which is essential for diversification. It's important to spread your investments across different sectors and market capitalizations to reduce risk.

• Review Performance: Periodically review the performance of your funds to ensure they are meeting your expectations and performing in line with their peers and benchmarks.

• Consider Your Goals: Reflect on your financial goals, risk tolerance, and investment horizon to determine if your current funds align with your objectives. If you have specific goals such as retirement planning or wealth accumulation, consider adjusting your portfolio accordingly.

• Evaluate Fund Managers: Assess the track record and expertise of the fund managers managing your investments. Look for consistency in performance and a clear investment strategy aligned with your goals.

• Stay Informed: Keep yourself updated with market trends, economic developments, and changes in regulations that may impact your investments. Stay connected with your financial advisor or conduct your research to make informed decisions.

• Seek Professional Advice: Consider consulting with a Certified Financial Planner (CFP) or a qualified financial advisor to get personalized advice based on your financial situation and goals. They can provide valuable insights and recommendations tailored to your needs.

Overall, while your current mutual fund portfolio appears well-diversified, it's essential to periodically review and adjust your investments based on changes in your financial situation and market conditions. By staying disciplined and informed, you can work towards achieving your financial goals effectively.

Ans: It's great to see your proactive approach to investing, especially at the age of 36. Investing through SIPs in mutual funds is a smart way to build wealth over the long term. Let's assess your current investment strategy and see if any adjustments are needed.

Firstly, investing in nine mutual funds might be excessive and could lead to over-diversification. Managing too many funds can be challenging and may not necessarily lead to better returns. It's generally recommended to have a focused portfolio with a smaller number of well-chosen funds.

Secondly, your portfolio seems to have a tilt towards mid-cap and small-cap funds, which can be riskier compared to large-cap funds. While these funds have the potential for higher returns, they also come with increased volatility. It's essential to ensure that your portfolio aligns with your risk tolerance and investment goals.

As a Certified Financial Planner, I suggest streamlining your portfolio by consolidating your investments into fewer funds that cover a broader spectrum of the market. Consider retaining one or two well-performing funds from each category (large-cap, mid-cap, small-cap, etc.) to achieve diversification while keeping things manageable.

Regarding allocation, it's crucial to align your investments with your risk profile and financial goals. A common approach is to allocate a higher percentage to large-cap funds for stability and then allocate smaller portions to mid-cap and small-cap funds for growth potential. However, the exact allocation would depend on factors like your risk tolerance, investment horizon, and overall financial situation.

I recommend consulting with a Certified Financial Planner who can conduct a detailed analysis of your financial goals and risk profile to provide personalized advice on asset allocation and fund selection.

In conclusion, while your initiative to invest through SIPs is commendable, refining your portfolio and asset allocation can optimize your returns and reduce unnecessary complexity.

Best Regards,

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