Modifications to my Mutual Fund Portfolio

[larryb500]

Here's my current MF portfolio. I've been investing from mid 2021. Need some help with a few doubts.

• ICICI Prudential Bluechip Fund Direct Growth = 5600
• Motilal Oswal S&P 500 Index Fund Direct Growth = 3400
• ICICI Prudential Technology Direct Plan Growth = 10000
• UTI Mid Cap Fund Direct Growth = 10000
• UTI Nifty 50 Index Fund Direct Growth = 10000
• Parag Parikh Flexi Cap Fund Direct Growth = 5000
• SBI Flexicap Fund Direct Growth = 4500
• Kotak Flexi Cap Fund - Direct Plan - Growth = 1500
• HDFC Index S&P Fund Sensex Plan-Direct Plan = 5000

Total SIP : 55000

edit : SIP value increased over the time

Current Value : 1600000

Here are my few questions.

• Is spreading over 9 Mutual Funds's ok? or should I close some and reduce the total no of Mutual Funds?
• I started Mutual Fund on Cleartax and later moved to Groww. Of above 10k of SIP is on Cleartax and 45k is on Groww. Is this ok or should I close cleartax and move to Groww?
• I have about 5X of my salary amount in my Savings Account. It makes me comfortable having that amount. Is this ok or should I put them into investing instruments?

 

[pushkin]

@larryb500 Any reason why you haven't added any foreign fund?

 

[larryb500]

@pushkin Technology fund covers most of the US stocks. Also have Motilal S&P 500 index fund. I though these should be enough to cover foriegn stocks

 

[pushkin]

@larryb500 Ah okay, sorry I missed that.

So to sum it up, you should be fine with 2 Indian funds and 2 US funds. No need to have so many similar funds.

 

[larryb500]

@pushkin Any suggestions on which ones can be stopped?

 

[pushkin]

@larryb500 From Indian funds, I'd stop everything except ICICI Bluechip and Parag Parikh.

 

[queenenny]

@larryb500 !Remind me 2 days

 

[god4life12345]

@larryb500 Why UTI mid cap fund?

 

[larryb500]

@god4life12345 No Specific reason. It's giving good returns among all others @ 22% XIRR. Why do you ask?

 

[god4life12345]

@larryb500 I haven't see a single person picking UTI mid cap MF other mid cap are giving better returns. You are going for fresh investment.. Correct??

 

[larryb500]

@god4life12345 Yes.

 

[aradhit]

@larryb500 I guess all the flexi cap funds can be merged into one. Just the Parag Parikh Flexi Cap.

 

[imjapun]

@larryb500

1. Your mutual funds and their allocations should be as per your long term goals, if any assigned. If you are using a bunch of mutual funds against each goal, then this diversificatioj could be justified. Since you are using a 3rd party app for investing, it should not be a problem.

Otherwise, this diversification is not recommended. I understand that you may be nervous about putting your eggs in one basket or thinking that some funds may be superiod than others in cycles. But over the ling term, all of this balances down. You are already diversifying across market caps. So, for a small SIP amount, you need not further diversify in the same market cap. If you have a big SIP in a particular category, say 50k, then you could divide into two funds of same category.

So, in my opinion you could:
A. Merge fund 9 into fund 4.
B. Merge 6,7,8 into fund 6
C. Check performance of fund 3. Wait till fed reduces interest rates. Then the IT stocks should perform better. Once they rally, you can take that profit and them shift SIP to fund 6.

• You can keep investing through both app, but its a hassle.
• No. Keep that amount as an emergency fund.

 

[larryb500]

@imjapun When do you mean merge?

Should I take the money out of the Mutual Fund or just stop the SIP in one and add in another?

 

[imjapun]

@larryb500 First stop SIP in fund to be discontinued. Then club this money with the SIP of the other fund and increase investment there.

For the discontinued fund, you can either redeem in one shot and pay LTCG and STCG accordingly. Or redeem money in tranches every quarter or year and shift to the other fund.

 

[gnobody]

@larryb500 All one needs for Indian market -

• One nifty50/index fund for large cap
• One flexi cap fund
• One small cap fund ( optional )

 

[thepcwife]

@larryb500 Why so many large and flexicap, I am curious

 

[larryb500]

@thepcwife When i start i just chose anything. There was no logic behind this