My name is Ravi Verma, and I'm a 37-year-old investor. I have been investing in the following mutual funds for the past year, with a monthly investment amount ranging between 60k-90k. I plan to continue these investments for the next 9 years, aiming to reach a goal of 1 crore+. Could you please review my portfolio and advise if any changes are required or if it's good to continue as is?
Current SIPs (?8k-10k per month each):
HSBC Small Cap Fund - Direct Plan - Growth
Aditya Birla Sun Life PSU Equity Fund - Direct Plan - Growth
HDFC Small Cap Fund - Direct Plan - Growth
Quant Small Cap Fund - Direct Plan - Growth
HDFC Balanced Advantage Fund - Direct Plan - Growth
SBI Contra Fund - Direct Plan - Growth
Nippon India Growth Fund - Direct Plan - Growth
Quant ELSS Tax Saver Fund - Direct Plan - Growth
HDFC Retirement Savings Fund - Equity - Direct Plan - Growth
Equity - Index Fund:
Tata Nifty Midcap 150 Momentum 50 Index Fund - Direct Plan - IDCW
Groww Nifty Smallcap 250 Index Fund - Direct Plan - Growth
Quant Multi Asset Fund - Direct Plan - Growth
I don't have much knowledge in mutual funds; I chose these based on their past returns. I'm concerned about whether I'm on the right track or if any adjustments are necessary.
Thank you for your guidance.
Best regards,
Ravi Verma
Ans: Hello Ravi & thanks for writing to me.
I see too many funds in your portfolio, which I believe can dilute your returns.
Given your age & objective, you may want to reconsider your investments in the Balanced Advantage Funds & Multi Asset Funds & instead start allocating to a multi cap fund.
I also notice investments in a PSU Equity Fund. While the PSU funds have given good returns recently, as thematic funds, you must not have a large chunk of your portfolio in them. Investing in thematic funds can generate alpha but thematic funds can also underperform.
If you can provide a percentage breakup of the investments, I may make other recommendations.
