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WobblyPancake
WobblyPancake
Meta

Help gauge my portfolio

Hi all awesome people, I have been investing for 7 years now, since I started my job and below is the break down of my current SIPs:

Category Fund Amount Small cap Nippon India Small Cap Fund 15000 ELSS Quant Tax Plan 7000 Flexi cap Parag Parikh Flexi Cap Fund 20000 Index ICICI Prudential Nifty Next 50 Index Fund 4000 Index Nippon India Nifty Midcap 150 Index Fund 3000 Index Nippon India ETF Nifty 50 BeES: Stock SIP 20000 Large & Mid cap Mirae Asset Emerging Bluechip Fund 11000 Multi cap Quant Active Fund 5000 Sector: Energy DSP Natural Resources & New Energy Fund 5000 Sector: Energy Tata Resources & Energy Fund 5000 Sector: Energy Nippon India Power & Infra Fund 5000 Global ICICI Prudential US Bluechip Equity 5000 Global Navi NASDAQ 100 Fund of Fund 3000 Global VOO-Vanguard S&P 500 ETF: Stock SIP 5000 Global VWO-Vanguard FTSE Emerging Markets ETF: Stock SIP 5000 Sector: Precious Metal Nippon India Gold Savings Fund 3000 Sector: Precious Metal Aditya Birla Sun Life Silver ETF 4000 Sector: Tech ICICI Prudential Technology Fund 5000 Value ICICI Prudential Value Discovery Fund Growth 8000 Total 138000

I had alot of diversification and had multiple active SIPs in same categories, I tried cutting them down based on some analysis. I have few questions:

  1. Am I over diversified? I have mostly 1 active SIP now in each sector.

  2. Few of categories like multi cap have negligible allocation, should I remove them or allocate more?

  3. I am betting heavy on energy please help me decide 1 fund from above 3.

  4. I have stopped SIP in a bunch of funds but DID NOT sell them. How do I rebalance existing funds, do I sell and rebuy and pay the tax and load or just keep it?

I have other investments like emergency fund FD, liquid cash, gold and real estate. My only goal from MF is wealth creation and can with highly aggressive investment profile.

Thanks in advance people.

15mo ago
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SwirlyTaco
SwirlyTaco
Stealth15mo

Before I put my thoughts to you on this, may I ask you what are you trying to achieve with the portfolio?

Why are you doing what you're doing here?

WobblyPancake
WobblyPancake
Meta15mo

As stated my only goal is wealth creation. I don't intend on selling these for any goal like kids education etc as I have other things sorted for those occasions. I would love to become financially independent in next 5-7 years and thats what I am aiming at.

SwirlyTaco
SwirlyTaco
Stealth15mo

The fundamental view that investors have is that investing is arithmetic. This is very far from the truth and ends up in gory endings to investor journeys.

Alpha doesn't chase diversification, alpha chases concentration. Concentration takes belief.

You need surgery on your portfolio. You should get a RIA involved asap to help with you concentrating the portfolio for returns.

First to concentrate investment to ensure you earn beta (aka at-least a single index), then concentrate to ensure you get multi cap alpha (aka a single flexicap fund). Global investment is too little to make any meaningful dent in your wealth. The rest of the portfolio is not required.

Asset allocate as a whole, MFs are just one vehicle.

Finally, FI is an abused term and ill understood. With the quantum of investing you're doing - unlikely to happen in 5/7 years. Shore up earnings and define what that escape point is.

Good luck!

CosmicDonut
CosmicDonut
Stealth3mo

There's a concept called buy, borrow and die. I assume you would not sell 80% of your investments.

You take debt on your investments, the secret sauce is to never sell. Repay the debt and buy more debt, hopefully <30% of your earnings.

BouncyPancake
BouncyPancake
Stealth15mo

People have less stocks in their portfolios than you have funds/etfs, how are people supposed to review so many funds. What's the overlap between your funds ?

SnoozyPanda
SnoozyPanda
Unilever15mo

Too many MFs in your portfolio...huge overlaps I am sure...get it checked first and then divide your portfolio into large/index, midcap and small cap along with gold and US stocks if you want...right now it just seems spray and pray

JazzyNarwhal
JazzyNarwhal
Stealth15mo

Garbage. No point in explaining the reasons why. I suggest you take help of a CFP or an MFD partnered with companies and offers free advice and hand holding to investors. If you want a good advisor, mail me SreekanthAdvisory@gmail.com. NISM Certified MFD and IRDAI licensed insurance advisor.

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