Mutual Fund: If you are looking for a portfolio review, we bring you expert guidance directly from Shilpa Gole, founder of NerdyBird Wealth Advisory LLP. She spoke exclusively to ET Now Swadesh, where she reviewed investors’ portfolios and recommended funds accordingly. You can go through the fund recommendations to check whether you hold any of them, and if you do, whether you are heading in the right direction.
1. Investor portfolio
Monthly SIP investment
- Bandhan Small Cap Fund: Rs 3000
- HDFC Flexi Cap Fund: Rs 3000
- Invesco Large & Mid Cap Fund: Rs 2000
Lump sum investment
- Trust Small Cap Fund: Rs 3 lakh
- HDFC Mid Cap Fund: Rs 3 lakh
- SBI Gold Fund: Rs 2 lakh
The investor wants to step up his SIPs by 10 per cent annually. His investment horizon is 18-20 years.
Expert recommendation
- According to the expert, a 10 per cent annual step-up could help the investor build around Rs 1.24 crore. However, investor allocation to mid- and small-cap funds is relatively high, which increases volatility. The expert recommends raising exposure to large-cap funds to bring a better balance and stability to the portfolio.
- Increase large-cap exposure by allocating Rs 2,000-Rs 3,000 from the Rs 8,000 SIP to a plain large-cap index fund (Nifty 50 or Nifty 100).
- Continue investing in HDFC Flexi Cap.
- Reduce or stop SIP in Invesco Large & Mid Cap, as the Flexi Cap fund already provides mid-cap exposure.
- Consolidate the Trust Small Cap investment into Bandhan Small Cap.
- Limit small-cap allocation to around 10%.
- Maintain about 10 per cent allocation to gold and continue with SBI Gold Fund.
2. Investor portfolio
- Parag Parikh Flexi Cap: Rs 3000
- Kotak Multi Cap: Rs 3500
- Motilal Oswal Mid Cap: Rs 3500
- Nippon India Small Cap: Rs 2000
- Canara Robeco Large & Mid Cap: Rs 3000
- Target corpus: Rs 2 crore
- Investment period: 13 years
Expert recommendation
With Rs 15,000 SIP and 10 per cent annual step-up, the total corpus could reach about Rs 1.7 crore, Rs 30 lakh short of the Rs 2 crore target. To bridge the gap, the expert suggested increasing SIP to Rs 20,000 per month with a 10 per cent annual step-up.
Portfolio suggestions:
- Reduce mid-cap and small-cap SIP slightly.
- Add a large-cap fund (Nifty 50 or Nifty 100 index fund).
- Alternatively, consider active large-cap funds.
- Ensure at least Rs 10,000 of the Rs 15,000 SIP goes into large-cap and flexi-cap funds.
- Continue mid-cap and small-cap funds, but with a lower allocation.
- Add 10 per cent exposure to gold.
- Consider global exposure via US or Europe-focused funds.
3. Investor portfolio
- HDFC Flexi Cap: Rs 5000
- HDFC Mid Cap: Rs 5000
- ICICI Pru Multi Asset: Rs 5000
- Nippon Small Cap: Rs 5000
- SBI PSU Fund: Rs 5000
- HDFC Defence Fund: Rs 1000
- LIC Index Plus Nifty 50: Rs 10000
- LIC Index Plus Nifty 100: Rs 10000
- Time horizon: 10 years
- Target corpus: Rs 5 crore
Expert recommendation
To reach Rs 5 crore: Increase SIP to around Rs 1.3 lakh per month.
Portfolio restructuring advice:
- Exit ULIPs (LIC Index Plus) due to high charges from insurance, admin, fund management, mortality, and GST.
- Invest directly in Nifty 50 or Nifty 100 index funds.
- Reduce sectoral/thematic fund exposure (SBI PSU and HDFC Defence).
- Consolidate investments into Flexi Cap for diversified exposure.
- Maintain Nippon Small Cap and HDFC Mid Cap, but reduce allocation to ~10% each.
- Add gold and silver exposure via ETFs or savings funds.
- Allocate 10 per cent to global funds (US, Europe, or MSCI World-based funds).
- NRI Account Clarification for Mutual Funds:
- Cannot link both NRE and NRO accounts in the same folio—choose one.
- Use an NRE account for investing foreign income.
- Use an NRO account for investing Indian income (e.g., rental income).
(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.)
