HI SIR I HAVE INVEST SOME OF MUTUAL FUND LAST 9 MONTHS AGO, AND I WANT YOUR OPINION WHAT CAN I DO, I CONTINUE WITH THEM OR SWITCH OR STOP. THERE ARE MY PROFILE (HDFC TRANSPORTATION AND LOGISTICS FUND DIRECT GROWTH @ RS. 1000/- PM, TATA MULTICAP FUND DIRECT GROWTH @ RS. 500/- PM, TATA NIFTY INDIA DIGITAL ETF FOF DIRECT GROWTH @ RS. 500/- PM, BANDHAN FINANCIAL SERVICES FUND DIRECT GROWTH @ RS. 500/- PM, MIRAE ASSET MULTI ASSET ALLOCATION FUND DIRECT GROWTH @ RS. 500/- PM)
Ans: You have invested in various mutual funds for 9 months.
Your portfolio includes HDFC Transportation and Logistics Fund, Tata Multicap Fund, Tata Nifty India Digital ETF FOF, Bandhan Financial Services Fund, and Mirae Asset Multi Asset Allocation Fund.
Assessing Each Fund
HDFC Transportation and Logistics Fund
Sector-specific fund focused on transportation and logistics.
High risk due to sector concentration.
Suitable for aggressive investors.
Tata Multicap Fund
Invests across large, mid, and small-cap companies.
Diversified portfolio reduces risk.
Balanced growth potential.
Tata Nifty India Digital ETF FOF
Follows the digital sector index.
High risk due to sector focus.
Suitable for those with high risk tolerance.
Bandhan Financial Services Fund
Sector-specific fund focused on financial services.
High risk with potential high returns.
Suitable for aggressive investors.
Mirae Asset Multi Asset Allocation Fund
Invests in equity, debt, and other assets.
Balanced risk and return.
Good for moderate risk tolerance.
Recommendations
Diversification and Risk Management
Your current portfolio is diversified but has high sector concentration.
Reduce Sector-Specific Exposure: High concentration in specific sectors can be risky.
Increase Allocation in Diversified Funds: Multicap and multi-asset funds offer balanced growth and lower risk.
Actively Managed Funds vs. Index Funds
Actively managed funds aim to outperform the market.
Higher Potential Returns: Managed by experts who adjust based on market conditions.
Better Risk Management: Professionals make strategic decisions to mitigate risk.
Benefits of Regular Funds over Direct Funds
Direct funds lack professional guidance.
Expert Advice: Regular funds come with professional management.
Personalised Support: Certified Financial Planners provide valuable insights and adjustments.
Portfolio Adjustment Strategy
Continue with Balanced Funds
Tata Multicap Fund: Offers diversification and balanced growth.
Mirae Asset Multi Asset Allocation Fund: Provides stability with a mix of assets.
Reevaluate Sector Funds
HDFC Transportation and Logistics Fund: High risk; consider reducing allocation if risk tolerance is low.
Bandhan Financial Services Fund: High risk; reassess based on market conditions and risk tolerance.
Consider Alternatives to Index Funds
Tata Nifty India Digital ETF FOF: Sector-focused and passive; consider actively managed diversifed funds for better risk adjusted returns.
Regular Monitoring and Review
Review your portfolio every six months.
Assess Performance: Check fund performance and market conditions.
Seek Professional Guidance: Certified Financial Planners can provide insights and adjustments.
Final Insights
Your current portfolio has a mix of sector-specific and diversified funds.
Consider reducing exposure to high-risk sector funds.
Increase allocation in diversified and balanced funds.
Regularly review and adjust your investments with professional guidance.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
