Mutual Fund SIP: Mutual fund investments in India have experienced steady and consistent growth over the years. Notably, the month of August witnessed a significant surge in inflows into equity mutual funds, continuing a trend that has prevailed for the past 30 consecutive months.
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According to a report by Reuters, data sourced from the Association of Mutual Funds in India (AMFI) reveals that the growing preference for mutual funds, especially in the small- and mid-cap segments, can be attributed to investors’ expectations of robust returns within their portfolios.
In a special edition of ET NOW Swadesh, financial expert Vishwajeet Parashar provided valuable investment advice to a caller from Udaipur who aimed to expand his investment portfolio to Rs 5 crore within the next five years. The caller also expressed his intentions to initiate a Systematic Withdrawal Plan (SWP) of Rs 2 lakh per month after a 15-year horizon.
The caller, Sanjay, currently maintains a portfolio that includes Rs 15,000 invested in Axis Small Cap, Rs 10,000 in Quant Small Cap, and Rs 25,000 in Parag Parikh Flexi Cap.
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Additionally, he has allocated Rs 7,000 to Canara Robeco Bluechip Equity, Rs 8,000 to HDFC Developed World Indexes FoF, and Rs 10,000 to PGIM India Mid Cap Opp.
During the discussion, Vishwajeet Parashar recommended a strategic adjustment to Sanjay’s portfolio. Given Sanjay’s existing exposure to global equities through Parag Parikh Flexi Cap, Parashar suggested reducing the monthly investment in HDFC Developed World Indexes FoF to Rs 4,000. In its place, he advised reallocating the remaining Rs 4,000 to ICICI Prudential Value Discovery Fund.
Furthermore, Parashar recommended a reduction in exposure to small-cap funds and proposed a shift toward mid-cap funds.
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He also suggested exploring large and mid-cap funds, Nippon India Multi Cap Fund and HDFC Focused Fund to optimize Sanjay’s investment strategy.
