In an exclusive interview with ET Now Swadesh, focused on finance strategies, market expert Abhijit Chokshi highlighted the importance of disciplined investing, diversification and strategic portfolio rebalancing to achieve long-term financial goals. Answering multiple investor queries, he said that practical steps to optimise mutual fund portfolios and align investments with realistic targets.
‘Through the right financial strategy, your financial dreams can be fulfilled,’ Chokshi said, emphasising the role of structured planning.
A Rs 4.5 crore goal in 12 years – Is it achievable?
A 45-year-old investor from Assam, Nurul Azim, aims to build a corpus of Rs 4.5 crore over 12 years.
With an existing portfolio of around Rs 22 lakh spread across multiple mutual funds and a modest SIP, the goal appears ambitious under the current setup.
Chokshi pointed out that the portfolio has excess exposure to large-cap funds and overlapping investments.
“Two large-cap funds in the portfolio are overlapping, it would be better to keep just one,” he advised.
Reduce overlap, improve balance.
The expert recommended trimming duplication and retaining quality funds such as flexi-cap and select mid-cap schemes while reviewing optional holdings like contra funds.
He also suggested that any additional SIP of Rs 10,000 should be directed towards a single large-cap or index fund to improve stability.
High-risk exposure is a concern
A major red flag identified was the investor’s exposure to sectoral and thematic funds such as PSU, infrastructure, and automotive funds.
“All of these fall into the cyclical and high-risk categories — one should gradually exit them,” Chokshi said.
He said that reallocating lump-sum investments into existing SIP funds in a staggered manner reduces volatility risk.
Increasing SIP is crucial
To realistically achieve the Rs 4.5 crore target, the expert stressed the need for significantly higher contributions.
“An additional SIP of at least Rs 10,000 and a 15 per cent annual step-up are necessary,” he noted.
Another issue flagged was heavy exposure to a single fund house (SBI Mutual Fund).
“Over-reliance on a single company increases risk — fund managers, too, should be diversified,” he explained.
However, he found the investor’s allocation to a children’s fund appropriate and advised continuing it.
Balancing a home loan and investments
In another query, a Jaipur-based working couple with a home loan and a 6-month-old child sought advice on building Rs 1 crore in 10 years through SIPs.
Chokshi highlighted over-concentration in small-cap and SBI funds in their portfolio and recommended diversification.
“Instead of keeping the entire investment in a single AMC, it would be better to diversify it across flexi-cap, index, and mid-cap funds,” he said.
SIP strategy for Rs 1 crore goal
The expert suggested a monthly SIP of Rs 45,000–Rs 50,000, with a 10 per cent annual step-up to achieve the Rs 1 crore target.
He recommended investments across:
Flexi-cap fund (for diversification)
Nifty 50 index fund (for stability)
Mid-cap fund (for growth)
Loan vs Investment: What should come first?
On managing home loan EMIs alongside SIPs, Chokshi emphasised the importance of reducing debt.
“Being debt-free should be the primary goal — making small prepayments is a wise move,” he advised.
The discussion also touched upon financial planning for children’s education, where the expert warned against underestimating future costs.
“Planning based on today’s expenses is not enough, it is essential to factor in inflation 15–18 years down the line,” he said.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
