Should I change my SBI Bluechip Fund for a stronger performer?

Ans: Thank you for sharing your portfolio and financial goals. It's commendable that you have started investing early and have clear objectives. Let’s analyze your current investments and suggest adjustments to align with your goals of Rs 5 crore for a house, Rs 3 crore for children’s education, and Rs 10 crore for retirement.

Portfolio Analysis
Your portfolio is diverse, encompassing midcap, bluechip, small cap, and sector-specific funds. This diversity can work well if balanced correctly. Here's a detailed look at your current investments:

Axis Midcap Fund
Invested: Rs 2.40 lakhs
Current Value: Rs 2.90 lakhs
SIP: Rs 5,000 ongoing
Midcap funds offer high growth potential, and your investment has performed well.

Axis Bluechip Fund
Invested: Rs 1.95 lakhs
Current Value: Rs 2.19 lakhs
SWP: Rs 10,000 (Inactive)
Bluechip funds provide stability. However, you’re shifting this to Mirae Asset Large Cap Fund, which is also a strong performer.

Quant Liquid Plan
Invested: Rs 1.19 lakhs
Current Value: Rs 1.27 lakhs
This serves as your emergency fund, which is essential for liquidity.

Mirae Asset Emerging Bluechip Fund
Invested: Rs 67.5K
Current Value: Rs 81.41K
SIP: Rs 2,500 active
Emerging bluechip funds balance between large and midcap stocks, providing good growth potential.

Nippon India Small Cap Fund
Invested: Rs 42.5K
Current Value: Rs 61.58K
SIP: Rs 2,500 active
Small cap funds are risky but can yield high returns. Your investment here is performing well.

SBI Technology Opportunities Fund
Invested: Rs 50K
Current Value: Rs 55.06K
SIP: Rs 2,500 active
Thematic funds like this focus on specific sectors, offering high risk and reward. Your investment is performing decently.

Tata Digital India Fund
Invested: Rs 37.5K
Current Value: Rs 40.99K
This fund is sector-specific and inactive. Sector-specific funds should be approached with caution due to their volatility.

Quant Small Cap Fund
Invested: Rs 15K
Current Value: Rs 17.67K
SIP: Rs 2,500 active
This small cap fund is performing well, showing good growth.

Mirae Asset Large Cap Fund
Invested: Rs 0
SIP: Rs 10,000 started
Large cap funds provide stability and are a good replacement for your Axis Bluechip Fund.

Recommendations
Considering your goals and current portfolio, here are some recommendations:

Continue and Increase SIPs
Increasing your SIPs to Rs 35,000 from Rs 20,000 is a wise decision. This will significantly enhance your corpus over the long term.

Maintain Diversification
Maintaining diversification across large cap, mid cap, and small cap funds balances growth and risk. Continue with your current funds but with some adjustments.

Consider a Balanced Fund
Incorporate a balanced or hybrid fund to provide stability and moderate growth. These funds invest in a mix of equity and debt, reducing volatility.

Focus on Long-Term Goals
Your goals are achievable with disciplined investing. Ensure your investments align with your time horizon and risk tolerance.

Axis Midcap Fund
Continue your SIP in this fund. It offers good growth potential, which aligns with your long-term goals.

Mirae Asset Emerging Bluechip Fund
Maintain your investment in this fund. It balances growth from large and midcap stocks, fitting well with your portfolio.

Nippon India Small Cap Fund and Quant Small Cap Fund
Keep investing in these small cap funds. They add high growth potential, which is essential for long-term goals.

Mirae Asset Large Cap Fund
This is a good addition to replace your Axis Bluechip Fund. Large cap funds provide stability, essential for a balanced portfolio.

SBI Technology Opportunities Fund
Thematic funds can be volatile. If you wish to continue, limit exposure to prevent excessive risk.

Tata Digital India Fund
Since it's inactive, consider redirecting this investment to a more diversified fund or balanced fund.

Emergency Fund and Liquidity
Ensure your Quant Liquid Plan remains funded for emergencies. This is crucial for financial stability.

Regular Review and Rebalancing
Monitor your portfolio regularly and rebalance as needed. Market conditions change, and your portfolio should adapt accordingly.

Consulting a Certified Financial Planner
Working with a Certified Financial Planner can provide personalized advice and ensure your investment strategy aligns with your financial goals.

Conclusion
Your proactive approach to investing is admirable. By maintaining diversification, increasing SIPs, and focusing on long-term goals, you are well-positioned to achieve your financial objectives. Regular monitoring and consulting with a Certified Financial Planner will further enhance your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's commendable that you've been investing systematically and have clear financial goals in mind. Considering your long-term objectives, it's essential to ensure that your portfolio remains diversified and aligned with your risk tolerance. While thematic funds like the one you're invested in can offer potential growth, they also carry higher risk. As you pursue your MBA and temporarily pause SIPs, continue monitoring your portfolio periodically. Once you resume regular investing, consider rebalancing your portfolio if needed to maintain diversification. Consult with a financial advisor to optimize your investment strategy and ensure it aligns with your evolving goals and risk profile.

Ans: our portfolio leans towards aggressive growth with small-cap, thematic (pharma), and technology funds. This can be good for long-term wealth creation, but consider diversification:

Review your risk tolerance: Are you comfortable with potential volatility?
Balance your portfolio: Add a large-cap fund or multi-asset allocation fund for stability.
Monitor performance: Regularly review your funds and their performance compared to benchmarks.
Consider consulting a qualified financial advisor for a personalized assessment and potential portfolio adjustments.