Assess financial portfolio periodically to ensure funds’ good performance1 min read . Updated: 04 Dec 2019, 09:49 PM IST
If you put your portfolio together with your own research, you should make sure that you are investing in the direct plan variants of these schemes and not the regular plans to save significantly over your investment period
My wife and I invest around ₹3.25 lakh per month via systematic investment plans (SIPs). We are in our early 30s and have a long-term horizon (more than 15 years), are adequately insured with no liabilities and have a moderate to high risk profile. We invest every month in Mirae Asset India Equity fund ( ₹75,000), Kotak Standard Multicap fund ( ₹50,000), ICICI Prudential Multicap fund ( ₹50,000), Axis Mid Cap fund ( ₹50,000), and ₹25,000 each in L&T Mid Cap fund and Mirae Asset Emerging Equity fund. We also invest ₹50,000 every month in Voluntary Provident Fund (VPF). Can you review our portfolio and provide any suggestions for long-term wealth creation. Please let us know if we need to make any changes.
—Name withheld on request
You are investing a healthy sum in a long-term, equity-oriented portfolio. The Provident Fund investment in your allocation would count as a debt investment and, hence, your overall portfolio allocation works to about 85% in equity and 15% in debt. In the equity portion, you are investing a quarter of your overall monthly investment in a large-cap fund, 30% together in two multi-cap funds and another 30% in mid-cap funds (although the Mirae fund in this set is more of a diversified fund).
Considering the time frame and your risk profile, the portfolio has an appropriate asset allocation, and the fund choices themselves make it a well-diversified portfolio with good schemes. I would not recommend any changes to the portfolio, except to suggest that you review it periodically to make sure that the portfolio continues to have good funds in it.
Also, if you put this portfolio together with your own research, you should make sure that you are investing in the direct plan variants of these schemes and not the regular plans to save significantly over your investment period. If you took the help of an adviser who is helping you with maintaining the portfolio, then please discuss this question with her to make the appropriate choice.
Srikanth Meenakshi is co-founder, PrimeInvestor.in. Queries and views at firstname.lastname@example.org