Hi I have following SIPs. Can you suggest whether they are good, bad or ugly and suggest changes if any. Quant small cap direct growth-10000 Canara robecco small cap DG- 10000 PGIM india mid cap Opp DG-10000 SBI contra Direct plan...

Hi I have following SIPs. Can you suggest whether they are good, bad or ugly and suggest changes if any. Quant small cap direct growth-10000 Canara robecco small cap DG- 10000 PGIM india mid cap Opp DG-10000 SBI contra Direct plan growth-10000 Parag parik flexi cap DG-10000 Quant infrastructure DG-10000 ICICI prudential tech fund-10000 Tata digital India regular plan-10000 Aditya birla sun life digital India regular plan -10000 - I hv started investing in last 6months and aim is to make atleast 3cr by next 10yrs. I hv certain other investments in SIPs, equity and PF (about 50000 per month) Thank you

Ans: Your portfolio seems well-diversified across different categories and themes, which is a good approach. However, there are a few considerations to keep in mind:

Small Cap Exposure: Having significant exposure to small-cap funds like Quant Small Cap and Canara Robeco Small Cap can add volatility to your portfolio. While they have the potential for high returns, they also come with higher risk. Ensure you have a high-risk tolerance and a long-term investment horizon if you intend to stay invested in these funds.
Sectoral and Theme Funds: Funds like ICICI Prudential Tech Fund, Tata Digital India, and Aditya Birla Sun Life Digital India focus on specific sectors/themes. While these can offer opportunities for growth, they also carry concentration risk. Monitor these funds closely and be prepared for volatility, considering the dynamic nature of sectoral investments.
Mid Cap and Flexi Cap: PGIM India Mid Cap Opp and Parag Parik Flexi Cap provide exposure to mid-cap and flexible-cap segments, which can complement your small-cap investments. Ensure you review the performance and portfolio composition of these funds regularly to confirm they align with your investment objectives.
Regular Review: Given your long-term goal of reaching 3 crores in 10 years, regularly review your portfolio's performance and make adjustments as necessary. Consider rebalancing periodically to maintain your desired asset allocation and risk level.
Risk Management: Since you have a significant amount invested across various funds, ensure you have an adequate emergency fund and insurance coverage to mitigate any unforeseen risks.
Overall, your portfolio appears to have the potential to achieve your long-term financial goals, but it's essential to monitor and adjust it periodically based on your changing financial situation and market conditions. Consider consulting with a financial advisor for personalized advice tailored to your specific needs and objectives.

Ans: At age 26, it is appreciable that you have started investing early.

It shows responsibility towards your future financial goals.

Your current SIPs are diversified across multiple categories.

But some of these SIPs may not be aligned well for long-term consistency.

Let us now review each one professionally.

1. Quant Small Cap Fund - Direct

Small caps can be volatile.

This fund is aggressive and high-risk.

Direct plans have no guidance or monitoring.

This may affect long-term performance.

Switching to a regular plan with a Certified Financial Planner is better.

This will ensure proper guidance and rebalancing.

2. Nippon India Large Cap - Direct

Large caps offer stability in a portfolio.

However, this fund’s long-term consistency is not very strong.

Also, direct plans lack expert monitoring.

A regular plan through a CFP ensures better handholding.

Tracking and performance review becomes easier.

3. Mirae Asset ELSS Tax Saver

This fund is decent for tax saving.

It is diversified and has shown fair returns.

However, regular review is still needed.

A regular plan helps with documentation and timely alerts.

Switching to regular mode can be beneficial in the long run.

4. UTI Nifty 50 - Direct

This is an index fund.

Index funds only mirror the market.

They do not aim to beat the market.

They lack human intelligence and flexibility.

They don’t perform well during corrections or sideways markets.

Actively managed funds have higher potential.

They can outperform in changing market situations.

Consider replacing this with a well-managed large cap fund.

In regular plan through CFP, you get guided fund selection.

5. Parag Parikh Flexi Cap

Flexi cap funds provide flexibility across market segments.

This fund has been popular recently.

But it has higher exposure to international stocks.

This brings currency risk and regulatory risks.

Also, it may overlap with other holdings.

You should regularly monitor for overlap and concentration.

Again, direct mode has no professional review.

6. Tata Midcap Growth - Direct

Midcaps are good for long-term.

But they need close tracking due to higher volatility.

A regular plan with expert guidance is ideal.

Direct mode will not help during market correction periods.

Switching to regular mode will ensure ongoing support.

7. Tata Small Cap - Direct

Small caps are risky in short to medium term.

This should not be your core holding.

Should be allocated only with close guidance.

Again, direct plans can go off-track without support.

If unmanaged, can bring portfolio imbalance.

Assessment of Direct Funds: Key Concerns

Direct funds may look cheaper in expense.

But they lack professional support and review.

There is no monitoring of changes in fund quality.

You may miss timely exits and rebalancing.

A Certified Financial Planner guides with logic and analysis.

They also help align your funds with your goals.

Regular plans have MFD support and rebalancing discipline.

They protect from behavioural mistakes during market volatility.

Overall, regular funds with expert guidance bring higher net value.

What Can Be Done with Your Existing SIPs?

You can consider the following changes:

Discontinue index fund (UTI Nifty 50) SIP.



Reduce exposure to direct small and midcap funds.



Switch from direct plans to regular plans via a Certified Financial Planner.



Ensure SIPs are part of a professionally constructed portfolio.



Ensure proper asset allocation, fund category balancing and tax efficiency.



New SIP of Rs 10,000 per Month – Suggestions

For your new Rs 10,000 monthly SIP, here is a 360-degree plan:

Allocate across diversified categories.



Ensure each fund has low overlap and different market focus.



Invest in 3 to 4 funds max.



All in regular mode with CFP-led support.



Avoid index funds, as they only match market returns.



Go for actively managed funds with proven history.



Include large-cap, mid-cap and flexi-cap mix.



Monitor quarterly with your Certified Financial Planner.



Additional Guidance for 15-Year Wealth Building

At 26, your time horizon is excellent.

But long-term wealth creation needs more than just SIPs.

It needs strategy and discipline.

Below are key steps for a full-circle approach:

Set clear financial goals: Home, car, retirement, child education etc.



Link SIPs to each goal separately.



Keep emergency fund in place (6 months expenses).



Get sufficient life and health insurance (pure protection plans).



Avoid investment-cum-insurance products.



They give low returns and poor insurance.



Do not mix insurance with investment.



Track your SIP performance annually.



Rebalance if some funds underperform.



Maintain asset allocation: Equity, Debt and Liquid.



Avoid emotional reactions during market dips.



Stay invested with guidance from your CFP.



Be aware of taxation rules on equity and debt funds.



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



STCG on equity is taxed at 20%.



Debt fund gains are taxed as per income slab.



Regular plan MFD and CFP helps with all tax planning.



What Not to Do in the Next 15 Years

Don’t invest in index funds.



They lack active strategy.



Don’t choose funds by past returns only.



Don’t use direct funds without financial expertise.



Don’t invest in real estate for returns.



Don’t invest in annuity products for retirement.



Don’t mix investment and insurance.



Don’t make decisions based on short-term news or noise.



Don’t stop SIPs during market corrections.



Role of a Certified Financial Planner

A Certified Financial Planner helps you:

Set goals based on life stages.



Create custom SIP and lump sum plans.



Select the best active funds for your goals.



Rebalance annually to stay on track.



Plan taxes as per latest rules.



Protect wealth with right insurances.



Build retirement with strategic planning.



Create a total financial blueprint for life.



Keep emotions out of financial decisions.



Final Insights

You have taken a great step by starting early.

But choosing the right funds is key.

More important is monitoring them regularly.

Direct plans lack this important support.

Switching to regular plans under CFP brings value.

Also, add Rs 10,000 new SIP with proper strategy.

Don’t follow trends.

Stay committed and review annually.

Avoid overlapping funds and unnecessary risks.

Have a complete financial roadmap in place.

You are building your future.

Make each rupee work with expert guidance.

This 360-degree approach will lead to better outcomes.

You will be financially secure and confident.

Take the next steps with clarity and care.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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