Hi , i have started SIP in 2018 and invested in HDFC growth fund . Niw getting profit 2 Lacs . Please suggest shall i continue in this or book profit and start new SIP. If so suggest where to invest .

Ans: It's a decent scheme in its category, please be invested.

Ans: Assessing Your Mutual Fund Investments and Planning for the Future

Your portfolio demonstrates a disciplined approach to mutual fund investing over the years. Let's evaluate your current holdings and chart a course for future investments.

Analyzing Existing SIPs

HDFC Top 200, ICICI Prudential Large & Midcap, and Bandhan Flexicap Funds have been part of your investment journey for several years. These funds offer exposure to different market segments, providing diversification benefits.

BSL Frontline Equity Fund, while stopped in 2020, has a long track record of performance. It's essential to review the reasons for discontinuing this SIP and assess whether it aligns with your current investment strategy.

Mirae Asset Bluechip Fund and HDFC Flexi Cap Fund, initiated more recently, contribute to diversification and may offer growth potential.

Evaluating Performance and Suitability

Review the performance of each fund relative to its benchmark and peer group. Assess whether the fund manager's investment approach and strategy align with your risk tolerance and investment objectives.

Consider the consistency of returns, risk-adjusted performance, and fund management quality. Additionally, evaluate the fund's expense ratio and turnover ratio to ensure cost-effectiveness.

Deciding Whether to Continue or Exit

Continue SIPs in funds with consistent performance, robust fundamentals, and alignment with your investment goals.

Consider exiting funds that consistently underperform their benchmarks or peers, have experienced significant changes in fund management, or deviate from your risk profile.

Planning Additional Investments

Given your intention to invest an additional Rs. 15,000, consider the following options:

Increase SIP amounts in existing funds with proven track records and growth potential. This approach maintains continuity and capitalizes on the strengths of your current portfolio.

Explore new funds that complement your existing holdings and provide exposure to underrepresented sectors or asset classes. Conduct thorough research and seek professional advice to identify suitable options.

Seeking Professional Guidance

As a Certified Financial Planner, I recommend conducting a comprehensive portfolio review to ensure alignment with your financial goals and risk tolerance. Regular monitoring and periodic adjustments are essential to optimize your investment outcomes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Continue the SIP, good fund.

Ans: this depends on what was your vision behind investing in these MF, if it was for profit booking then book, if it was for long term then why are you even looking at the profits?

Ans: It's commendable that you have a well-established SIP strategy. Your current SIPs total ?22,500 per month, with investments in ICICI Prudential Blue Chip, Mirae Asset, and Kotak Small Cap funds. Additionally, you invest ?12,500 per month in PPF for tax benefits.

Assessing Your Portfolio
Your current portfolio is diversified across large-cap, multi-cap, and small-cap funds. This balance provides a good mix of stability and growth potential. As you are planning to retire in the next five years, a careful assessment of risk and return is crucial.

Portfolio Diversification
Large-Cap Fund (ICICI Prudential Blue Chip): Provides stability and steady returns. Large-cap funds invest in well-established companies with a history of reliable performance.

Multi-Cap Fund (Mirae Asset): Offers exposure to companies of various sizes, balancing growth potential with risk.

Small-Cap Fund (Kotak Small Cap): Targets high growth but comes with higher volatility and risk. Small-cap funds can provide significant returns over time.

Public Provident Fund (PPF)
Your PPF contributions are beneficial for tax savings and offer secure returns. PPF is a good debt investment, providing a counterbalance to the equity risk in your portfolio.

Increasing Your SIP by ?10,000
You plan to increase your SIP by ?10,000 per month. Here’s a strategic approach:

Adding Mid-Cap and Balanced Funds
Mid-Cap Fund: Consider investing in a mid-cap fund. These funds invest in mid-sized companies, offering a balance between large-cap stability and small-cap growth.

Balanced Fund: Balanced funds invest in both equities and debt instruments. They offer moderate risk and steady returns, suitable for someone nearing retirement.

Benefits of Actively Managed Funds
Professional Management: Actively managed funds are overseen by fund managers who make strategic investment decisions. This can potentially lead to better performance than index funds.

Market Adaptability: These funds can adapt to market changes, optimizing returns and managing risks effectively.

Disadvantages of Direct Funds
Higher Effort: Direct funds require you to make investment decisions and manage the portfolio yourself. This can be time-consuming and challenging.

Professional Guidance: Investing through a Certified Financial Planner (CFP) ensures professional management and strategic alignment with your financial goals.

Implementing the New Investment Plan
Step-by-Step Approach
Assess Your Risk Tolerance: Given your retirement timeline, it's crucial to balance risk and return. Consider how much risk you are comfortable taking.

Allocate the New SIP Amount: Invest ?5,000 in a mid-cap fund and ?5,000 in a balanced fund. This diversification enhances your portfolio's growth potential while maintaining stability.

Regular Monitoring: Review your portfolio regularly. A CFP can help you adjust your investments based on market conditions and changing financial goals.

Professional Guidance
Engaging with a CFP provides several advantages:

Tailored Advice: A CFP can offer investment advice tailored to your specific situation, risk tolerance, and retirement goals.

Portfolio Management: Regular monitoring and rebalancing ensure your investments stay aligned with your financial objectives.

Conclusion
Increasing your SIP by ?10,000 and diversifying into mid-cap and balanced funds will enhance your portfolio. Regular reviews with a CFP ensure your investments align with your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in