Hi,
Can you please give feedback on my portfolio and advise on changes that could be worth considering? My horizon is 10+ years. Below are the SIPs (Monthly)
Parag Parikh FlexiCap fund - Rs. 51,000/-
Nippon India Multi Cap fund - Rs. 40,000/-
Mirae Asset Large & Mid Cap fund - Rs. 25,000/-
Mirae Asset Aggressive Hybrid Fund - Rs. 50,000/-
Thanks,
Sridhar
Ans: Feedback on your Mutual Fund Portfolio (10+ year horizon)
Strengths:
Diversification: Your portfolio has good diversification across asset classes with a mix of flexi-cap, multi-cap, large & mid-cap funds, and an aggressive hybrid fund. This helps spread risk and capture growth from different market segments.
Long-term Focus: A 10+ year horizon allows you to ride out market fluctuations and benefit from potential long-term growth in equities.
Areas for Potential Improvement:
Equity Weightage: Your portfolio has a significant allocation (around 70%) towards aggressive equity funds (Parag Parikh Flexi Cap, Nippon India Multi Cap, Mirae Asset Large & Mid Cap). While this can be good for growth potential, it also carries higher risk.
Debt Allocation: Consider including a dedicated debt fund to balance your portfolio and provide stability. This is especially important as you near retirement.
Aggressive Hybrid Fund: The Mirae Asset Aggressive Hybrid Fund invests in a mix of equity and debt. While it provides some stability, it might not offer the same growth potential as your pure equity funds. Consider if this aligns with your risk tolerance.
Recommendations (consult a CFP for personalized advice):
Review Asset Allocation: Analyze your risk tolerance and adjust your equity-debt ratio. A 10-year horizon allows for a more aggressive allocation, but consider adding a debt fund for stability (10-20% of your portfolio).
Evaluate Aggressive Hybrid Fund: Decide if the Mirae Asset Aggressive Hybrid Fund aligns with your goals. You could consider replacing it with a pure equity fund for potentially higher growth, or a more conservative hybrid fund for more stability.
Review Fund Performance: While diversification is good, monitor the performance of each fund within your portfolio. If a fund consistently underperforms its peers, consider replacing it with a better performing option.
Overall, your portfolio has a good foundation for a long-term investment strategy. Consulting a Certified Financial Planner (CFP) can provide a more personalized assessment and recommendations based on your specific financial goals and risk tolerance.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
