Sir I am mani
I am investing in sip at
ICICI nifty 50 -1500
ICICI nifty IT-1500
ICICI Nasdaq-1500
Quant flexicap -1500
SBI contra -500
HDFC small cap -500
I am investing like this correct or not,need any change in this pattern I am thinking about add quant midcap fund 1500 kindly guide me
Ans: Current Investment Portfolio
Your current SIP investments are:
ICICI Nifty 50: Rs. 1,500
ICICI Nifty IT: Rs. 1,500
ICICI Nasdaq: Rs. 1,500
Quant Flexicap: Rs. 1,500
SBI Contra: Rs. 500
HDFC Small Cap: Rs. 500
Your total monthly investment is Rs. 7,000.
Analysis of Current Investments
Strengths
Diversification: Your portfolio covers various sectors and geographies.
Balanced Risk: Includes large-cap, mid-cap, and small-cap funds.
Growth Potential: Investing in sectors like IT and international markets.
Areas for Improvement
Sector Overlap: Heavy focus on technology (ICICI Nifty IT and ICICI Nasdaq).
Small Cap Allocation: Only Rs. 500 in small caps, which is minimal.
Under-Utilized Funds: Small investments in high potential funds (SBI Contra and HDFC Small Cap).
Recommendations for Changes
Reduce Sector Overlap
Diversify Across Sectors:
Consider reducing allocation in technology-focused funds.
Allocate to sectors with high growth potential and lower correlation.
Increase Small Cap Exposure
Boost Small Cap Allocation:
Increase investment in HDFC Small Cap.
Consider additional small cap funds for high growth potential.
Consider Balanced Funds
Add Balanced or Hybrid Funds:
Include funds that mix equity and debt.
Provides stability and reduces risk.
Adding Quant Midcap Fund
Benefits
Mid-Cap Exposure:
Offers high growth potential.
Diversifies portfolio across different market segments.
Balanced Risk:
Mid-caps are less volatile than small caps.
Offers a good risk-return balance.
Suggested Allocation
Quant Midcap Fund:
Allocate Rs. 1,500 to Quant Midcap Fund.
Increase overall diversification.
Revised Portfolio Allocation
ICICI Nifty 50: Rs. 1,500
ICICI Nifty IT: Rs. 1,000 (reduce by Rs. 500)
ICICI Nasdaq: Rs. 1,000 (reduce by Rs. 500)
Quant Flexicap: Rs. 1,500
SBI Contra: Rs. 1,000 (increase by Rs. 500)
HDFC Small Cap: Rs. 1,000 (increase by Rs. 500)
Quant Midcap Fund: Rs. 1,500 (new addition)
Total monthly investment: Rs. 8,500
Final Insights
Diversification: Maintain a balanced portfolio across sectors.
Growth Potential: Focus on high-growth sectors and mid/small caps.
Risk Management: Include balanced funds for stability.
Regular Review: Monitor and adjust portfolio as needed.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
