I have following stocks in my portfolio. Kindly suggest which stocks to accumulate and which stocks to exit for 20% cagr. Baj Finser 72@ 1394 Baj Fin 25@ 5946 HDFC Bk 45 @ 1546 CDSL 50@ 960 Indian Bank 100@ 278 Boro ren 50@ 480 Hindalco 20@ 668 RIL 50@ 2376 Patanjali 45@ 976 Karnataka Bank 325@ 139 BSE 140@ 546 AWL 140@ 576 Dmart 15@3433 Kpi green 70@ 365

Ans:

1. Amara Raja Batt. - Hold

2. City Union Bank - Exit

3. Divi's Lab- Hold

4. Finolex Cables - Hold

5. Gail - Hold

6. Godrej Consumer- Hold

7. HCL Technologies- Hold

8. HDFC AMC- Hold

9. HDFC Bank - Hold

10. Hawkins Cooker - Hold

11. ITC - Hold

12. Indian Energy Exchange- Hold

13. Infosys- Hold

14. L&T- Hold

15. La Opala RG- Hold

14. Maruti Suzuki India- Hold

15. PI Industries- Hold

16. Reliance industries- Hold

17. Synergy International Ltd- Hold

18. VST Tillers Tractors Ltd – Prefer Escorts

19. Zee Entertainment - Avoid

20. Power Grid Co- Hold

21. Bajaj Auto Ltd - Hold

22. Eicher Motors - Hold 

Ans:

ADANI POWER LIMITED - Exit
ARCHIES LIMITED - Exit
ASHOK LEYLAND LIMITED- Hold
BHARAT HEAVY ELECTRICALS LIMITED - Exit
BIOCON LIMITED - Hold
COAL INDIA LTD - Exit
GAIL (INDIA) LIMITED - Hold
INDIAN OIL CORPORATION LIMITED - Hold
ITC LIMITED (XNSE:ITC) - Hold
L&T FINANCE HOLDINGS LIMITED - Hold
LARSEN AND TOUBRO LIMITED - Hold
LEMON TREE HOTELS LIMITED - Exit
LIC HOUSING FINANCE LTD – Prefer HDFC
NATIONAL ALUMINIUM CO LTD - Hold
NBCC (INDIA) LIMITED - Exit
ORIENT CEMENT LIMITED - Hold
POWER FINANCE CORPORATION LIMITED - Hold
RAIL VIKAS NIGAM LIMITED - Hold
Spicejet Limited – Hold, highly cyclical look to exit after decent returns
State Bank of India (XNSE:SBIN) - Hold
STEEL AUTHORITY OF INDIA LIMITED - Exit
TATA MOTORS LIMITED - Exit
TATA STEEL LIMITED - Hold
THE BANK OF BARODA LIMITED – Prefer SBI
THE FEDERAL BANK LTD - Hold
THE KARNATAKA BANK LIMITED - Exit
THE TATA POWER COMPANY LIMITED - Exit
WIPRO LIMITED - Hold

Ans:

Ans:

Ans: Creating a corpus of Rs 3 crore in 20 years is a significant but achievable goal. Your current portfolio has a good mix of equity and ELSS funds. Let's review your portfolio and suggest an optimized plan to achieve your target.

Assessing Your Current Mutual Fund Portfolio
Your portfolio includes various equity funds, which is essential for long-term growth. However, fine-tuning can help optimize your returns and achieve your goal of Rs 3 crore.

Equity Funds
Equity funds are crucial for wealth creation over the long term. They offer higher returns compared to other asset classes. Your portfolio has a mix of large-cap, mid-cap, and emerging equity funds, which is a good strategy for capturing market growth.

ELSS Funds
ELSS funds provide tax benefits under Section 80C and also offer equity exposure. This dual advantage makes them a valuable addition to your portfolio. Your investments in ELSS funds are a wise strategy for tax-efficient growth.

Evaluating Direct and Regular Funds
Disadvantages of Direct Funds
Direct funds might seem cost-effective due to lower expense ratios. However, they lack professional advice and guidance. Investing through a Certified Financial Planner (CFP) ensures you get valuable insights and tailored strategies.

Benefits of Regular Funds Through MFD
Regular funds, managed by Mutual Fund Distributors (MFD) with CFP credentials, offer expert advice. They help you navigate market fluctuations and optimize your portfolio for better returns. This guidance can significantly impact your investment success.

Optimizing Your Portfolio for Rs 3 Crore in 20 Years
To achieve Rs 3 crore in 20 years, consider these adjustments and additions to your portfolio:

Increase Equity Exposure
Allocate more to equity funds for higher growth potential. Equity funds generally outperform other asset classes over the long term. Increasing your investment in diversified and large-cap equity funds can help you achieve your target.

Focus on Actively Managed Funds
Actively managed funds can adapt to market changes and aim to outperform benchmarks. Choose funds with strong track records and experienced fund managers. Actively managed funds have the potential to provide better returns compared to passive index funds.

Systematic Investment Plans (SIPs)
Continue with SIPs to maintain discipline and average out costs. SIPs are effective for long-term wealth creation and mitigating market volatility. Regular investments through SIPs ensure you benefit from compounding and market fluctuations.

Diversify Across Asset Classes
While equity should dominate your portfolio, maintaining some exposure to hybrid and debt funds can ensure a balanced risk-return profile. This diversification provides stability and reduces overall portfolio risk.

Regular Monitoring and Rebalancing
Review your portfolio regularly and rebalance it to maintain alignment with your goals and risk tolerance. Regular monitoring ensures your investments stay on track and are adjusted according to market conditions and your evolving financial situation.

Suggested Investment Plan
Based on your current investments and the goal of Rs 3 crore, consider the following approach:

Equity Funds
Increase your SIPs in diversified and large-cap equity funds. These funds offer higher growth potential and are less volatile than small-cap funds. A balanced mix of large-cap and mid-cap funds can enhance your portfolio’s growth.

ELSS Funds
Continue investing in ELSS funds for tax benefits and equity exposure. Ensure these investments align with your overall asset allocation strategy. ELSS funds can play a vital role in achieving your long-term goals while providing tax efficiency.

Hybrid and Debt Funds
Maintain or slightly increase your investment in hybrid and debt funds. They offer stability and moderate returns, balancing your overall portfolio risk. This ensures that part of your portfolio is protected against market downturns.

Professional Guidance
Seek regular advice from a Certified Financial Planner (CFP). They can provide tailored strategies and help optimize your portfolio based on market conditions and your goals. Professional guidance ensures your investment decisions are well-informed and aligned with your objectives.

Conclusion
Your current portfolio is diversified and suitable for long-term growth. By increasing your equity exposure and focusing on actively managed funds, you can achieve your goal of Rs 3 crore in 20 years. Regular monitoring and professional guidance will keep your investments on track and help you navigate market fluctuations effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in