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Ans: It's great to see your commitment to long-term wealth creation at such a young age. Let's review your current investments and explore potential adjustments or additions to align with your goal of creating a 10 crore wealth over 25-30 years.

Review of Current Investments
UTI Nifty 50 Index Fund
Objective: This fund aims to replicate the performance of the Nifty 50 index, providing exposure to the top 50 companies in the Indian equity market.
Diversification: Investing in an index fund like UTI Nifty 50 Index offers broad market exposure and diversification across various sectors.
Cost-Effective: Index funds generally have lower expense ratios compared to actively managed funds, making them cost-effective for long-term investing.
Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.
Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.
Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.

SBI Small Cap Fund
Objective: SBI Small Cap Fund invests primarily in small-cap companies with high growth potential. These companies may offer significant growth opportunities but also come with higher volatility.
High Growth Potential: Small-cap companies have the potential to outperform the broader market over the long term, making SBI Small Cap Fund suitable for aggressive investors with a long investment horizon.
Risk Consideration: It's important to note that small-cap funds can be more volatile and carry higher risk compared to large-cap or index funds.
Suggestions for Portfolio Adjustment/Addition
Consideration for Adjustments
Diversification: While your current portfolio offers exposure to large-cap and small-cap segments, you may consider adding funds from other categories to further diversify your portfolio.
Risk Management: Evaluate your risk tolerance and ensure that your portfolio is well-balanced to withstand market fluctuations over the long term.
Addition of Funds
Mid-Cap Fund: Consider adding a mid-cap fund to your portfolio to complement your large-cap and small-cap investments. Mid-cap funds offer a balance between growth potential and risk.
International Equity Fund: Explore opportunities for international diversification by investing in an international equity fund. This provides exposure to global markets and reduces geographical risk.
Conclusion
Your current investments in UTI Nifty 50 Index Fund and SBI Small Cap Fund reflect a balanced approach with exposure to both large-cap and small-cap segments of the market. However, to achieve your long-term goal of creating a 10 crore wealth over 25-30 years, consider diversifying your portfolio further by adding a mid-cap fund and exploring international equity opportunities. Remember to review your portfolio periodically and make adjustments as needed to stay on track towards your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in