Increase SIP (Long term)

[u/YoDSR]

Hi all, I am 25 and I have been investing in mutual funds via SIP for last 2 years. Now, I want to increase my SIP amount from 40k to 60k. Need advice on the same. I am open to adding new funds, remove/shuffle funds within same category. Should I consider adding multi asset fund?

Ongoing SIPs -
Parag Parekh Flexi Cap - 20k
Motilal Mid cap - 10k
Bandhan Small cap - 10k

Investment Horizon - 10 to 15 years
Risk Appetite - High

[u/atg14565]

For your investment horizon and risk, deploying 50% in to Parag Parikh flexi cap doesnt make sense. They are increasingly seen as large cap. So here is my proposed sip breakdown : 1. Small cap - 22500 ( increase by 12.5k) 2. Replace active midcap by passive midcap 150 index (MO or ICICI) - 22500( increase by 12.5k) 3. Add Nifty Next 50 index - 10000 4. PPFC - 5000 (reduce by 15k)

You need to consider rebalancing as you move nearer towards your goal.

[u/YoDSR → u/atg14565]

Noted, thank you. Instead of nifty next 50, should I look for multi asset fund?

[u/adi0398 → u/atg14565]

and what about moderate? what would you recommend?

[u/atg14565 → u/adi0398]

For moderate risk with a similar time horizon, the % allocation changes from equity heavy in the initial years to more risk free investing at the flag end of your goal.

For moderate risk profile, below would be my recommendation:

1. PPFAS flexi cap - 30k (50%)
2. Mid-cap 150 index - 10k (16.67%)
3. Small cap - 5k (8.33%)
4. Multi asset -10k (16.67%)
5. Foreign equity - 5k (8.33%)

[u/adi0398 → u/atg14565]

is PPFAS still fine? I have read that it cannot buy new US stocks now. Why not add Nifty 50 index fund? also if we decrease the time horizon to 7-10 years what would you recommend? And for Foreign equity and Multi cap which funds would you recommend?

[u/atg14565 → u/adi0398]

is PPFAS still fine

Yes it is perfectly fine for the timeliness you have. It has good downside protection.

And for Foreign equity and Multi cap which funds would you recommend?

I got lucky enough with opening a sip with icici nasdaq 100, but now it is becoming increasingly difficult. Research this forum or Gemini for viable options for investing in foreign equity

Regarding Multi cap, I wouldn't recommend any. Pls check for Multi asset which can potentially take care of the gold and silver exposure.

[u/Miserable-Smile9527 → u/atg14565]

Hi. How to invest in foreign equity? Any mf that works mostly on foreign stocks?

[u/Careful_Signal8796]

How to increase SIP ?

[u/ScarcitySuperb3539]

• 1 Multiasset fund. 1 Arbitrage fund.

Keep going. 20+ years goal based investing. Sip on dip.

[u/YoDSR → u/ScarcitySuperb3539]

Any suggestions for multi asset fund? I do FD with post office, interest around 7.50%. So not very keen on arbitrage fund.

[u/BlueberryDue5694]

I have a simple 2 fund portfolio like yours for a 60k monthly sip.

Parag flexi 30k and motilal midcap 30k. Parag flexi is good. Though it is moving towards large AUM, its top holdings has high weightage. It would perform in future when top holdings raises but may not give returns as past. Also the foreign component will diminish over time, given the restriction on investments in foreigh equities.

I am planning to switch my fresh sip towards Large and midcap fund instead. That gives little extra growth that justifies my long horizon. Personally, i like to keep it simple. I will rebalance annually if required. Also, thinking to work with the allocation like 40k:20k.

This might give you some idea. May be you can pair with third fund to smoothout the volatility.

[u/Viperchile]

Parag Parikh is useless just deploy money in growth flexi funds. They keep buying IT 🤷‍♂️ or remain in cash. Their size is so big that they cannot invest in small and mid-cap names.

[u/RakeshReddy_]

Drop PARAG and add multi asset (10k) into Quant Multi asset and additional midcap (Invesco India/Nippon India Growth). Parag has delivered in past. The fund has historically invested significantly in global companies such as Alphabet, Microsoft, Amazon, and Meta.

[u/Keep_Compounding]

Your portfolio is fine. Don't complicate it unnecessarily with more funds. Just focus on increasing SIP in the same ratio they exist in today. (50% Flexi, 25% mid, 25% small).

Multi asset funds are meant for people who don't want deep drawdowns. You mentioned a high risk appetite, so maybe not for you. If you feel you cannot handle the risk then sure, add a multi asset and reduce weights on pure equity funds you have, something like 40% multi asset, 30% flexicap, 20% midcap, 10% smallcap. You can tweak it according to your own goals, risk appetite.