I am investing in following funds through SIP
1. HDFC top 200 Regular Growth since 2010 Rs. 3000
2. ICICI PRUDENTIAL LARGE & MIDCAP FUND GROWTH SINCE 2014 Rs. 2000
3. BANDHAN FLEXICAP FUND-GROWTH SINCE 2011 Rs. 2000
4. BSL FRONTLINE EQUITY FUND - GROWTH SINCE 2010 Rs. 3000 (STOPPED SIP IN 2020)
5. MIRAE ASSET BLUECHIP FUND - GROWTH SINCE 2021 Rs. 2500
6. HDFC FLEXI CAP - GROWTH SINCE 2022 Rs. 5500
PLEASE ADVICE ME WHETHER I SHOULD CONTINUE WITH THESE FUNDS OR EXIT.
I FURTHER WANT TO INVEST Rs. 15000 MORE. PLEASE SUGGEST WHETHER I SHOULD INCREASE SIP AMOUNT IN THESE FUNDS OR START SIP IN NEW FUND
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
