I’ve started regular SIPs across equity, gold, global funds — do I need to restructure?

I have started my job as a software engineer and I have started investing in different mutual funds. With a medium risk appetite and a long-term horizon of over 10 years, I’ve committed Rs 30,000 per month into systematic investment plans (SIPs). I currently invest Rs 30,000 per month through SIPs, split across different funds: Rs 10,500 (35%) in Parag Parikh Flexi Cap Fund, Rs 6,000 (20%) in Motilal Oswal Mid Cap Fund, Rs 9,000 (30%) in HDFC Nifty 50 Index Fund, Rs 3,000 (10%) in SBI Gold ETF, and Rs 1,500 (5%) in ICICI Prudential NASDAQ 100 Index Fund. Being new to mutual funds and personal finance, I’m seeking expert guidance on whether this allocation provides the right balance or if it needs restructuring for better diversification and long-term growth.

Advice by Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance

At 23, time is your biggest wealth-building asset. Your portfolio already reflects a growth-oriented strategy with 85% in equities, 10% in gold, and 5% in global tech. However, a few refinements can strengthen it further.

Consider increasing global allocation to 10–20% while keeping gold at 5–10%.

Slightly reduce Parag Parikh Flexi Cap and increase Nifty 50 allocation, since Parag Parikh currently holds higher cash levels.

The ICICI Prudential NASDAQ 100 Fund is no longer accepting fresh investments, so switch to another U.S.-focused fund. Avoid S&P 500 funds for now.

It’s good that you’ve stayed away from sectoral or thematic funds, which often clutter portfolios.

Currently, your portfolio leans toward large caps — a stable positioning for volatile markets. An annual review with a financial advisor is recommended.

That said, investing is only one part of financial planning. You also need to factor in your broader financial health:

Do you have an emergency fund (6–12 months of expenses)?

Do your parents or dependents have adequate health insurance?

Do you need a term plan (only if you have dependents or major liabilities)?

Are you planning for big milestones like marriage, property purchase, or retirement?

Addressing these questions will ensure your financial journey is holistic, covering not just investments but also risk management and long-term security.

SIP momentum in the market

Interestingly, your enthusiasm mirrors the larger investor sentiment in July. While Dalal Street struggled, mutual funds witnessed record inflows of Rs 42,702 crore into equity and growth-oriented schemes.

AMFI data shows industry AUM rose 1.3% to Rs 75.36 lakh crore, with the average AUM at Rs 77 lakh crore. Mutual fund folios touched 24.57 crore, with equity, hybrid, and solution-oriented schemes seeing strong growth.

SIPs were the standout story — Rs 28,464 crore flowed in during the month, with 68.69 lakh new SIPs registered. This pushed the number of active SIP accounts to 9.11 crore, underscoring how retail investors continue to treat market dips as opportunities rather than setbacks.