I am investing in following funds since 1.5 year. 1. Tata Digital India Fund Direct Growth- 2000 , 2. Parag Parikh Flexi Cap Fund Direct Growth - 2000 , 3. Axis Small Cap Fund Direct Growth - 1500 , 4. Aditya Birla Sun Life Digital India Fund Direct Growth- 2000, 5. Canara Robecco Small Cap Fund Direct Growth- 3000, 6. ICICI Prudential Technology Direct Plan Growth- 2000 My Investment horizon are for 10 to 15 years. Let me know is this a good fund to continue and should I hold this fund or release it? Also let me know some good fund for 10 to 15 years where I can invest?
Ans: Let's analyze your current mutual fund portfolio and discuss your investment options for a 10-15 year horizon.
Review of your Current Portfolio:
Diversification: You have six funds across different categories (Small Cap, Technology, and Flexi Cap). This is a good starting point for diversification.
Small Cap Focus: A large portion of your portfolio is in Small Cap funds, which can be riskier but offer potentially higher returns.
Overlapping Themes: Some funds might invest in similar sectors (Technology and Digital India). This could reduce the overall diversification benefit.
Considering your 10-15 year horizon, here's some feedback:
Your investment timeframe is good. A longer horizon allows you to ride out market fluctuations and potentially benefit from growth.
Risk Management: With a large small-cap allocation, your portfolio might be on the riskier side.
Here are some suggestions to consider:
Review Fund Overlap: Check if your funds have similar holdings. Consider replacing one if there's significant overlap.
Balance Risk and Reward: A 10-15 year horizon allows for some risk. But you might want to consider adding some Large or Mid-Cap funds for stability.
Talk to a CFP: A Certified Financial Planner can analyze your risk tolerance and goals. They can recommend a suitable asset allocation and specific funds based on your needs.
Here are some additional thoughts on choosing funds for a 10-15 year horizon:
Actively Managed Funds: Actively managed funds, where experienced fund managers make investment decisions, can outperform the market over time. Consider consulting a CFP to help you choose these funds.
Regular Review: Meet with your CFP periodically to review your portfolio and adjust it as needed based on market conditions and your evolving goals.
Stay Invested: Market ups and downs are normal. Don't panic and redeem your investments during downturns. Stay focused on your long-term goals.
Overall, you've taken a good first step by investing in mutual funds. By potentially refining your portfolio, seeking professional guidance, and staying invested, you can increase your chances of achieving your long-term financial goals.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
