Hope y’all are doing great. I’m a new investor and have recently learnt about mutual funds and sip’s from Zerodha Varsity. After reading up, I’ve started SIP’s in the following AMC’S:
AMC
Percentage
HDFC Nifty 50 Index Fund
8.70%
Nippon India Large Cap Fund
12.17%
ITI Focused Fund
10.43%
Old Bridge Focused Fund
8.70%
SBI Focused Fund
10.43%
SBI Liquid Fund
8.70%
Nippon India ELSS Tax Saver Fund
0.87%
Motilal Oswal Large and Midcap Fund
12.17%
Invesco India Smallcap Fund
8.70%
Groww Small Cap Fund
6.96%
WhiteOak Capital Mid Cap Fund
12.17%
I’ve tried distributing the amount across large, mid and small cap with somewhat more percentage allocated to large cap. I want to know the quality of this distribution and what can I do make it better?
Most of my funds barring large caps don’t have much common stocks.
A simple analysis by claude yielded this result. Do understand the reason for selecting each fund.
Here’s a breakdown of your portfolio across 11 funds:
The good
Decent spread across market caps — large, mid, and small cap are all represented
WhiteOak Mid Cap and Motilal Oswal Large & Midcap are generally well-regarded funds
SBI Liquid Fund gives you a safety cushion (emergency/short-term parking)
HDFC Nifty 50 Index Fund is a low-cost, passive core holding — smart choice
The concerns
Three focused funds (ITI, Old Bridge, SBI) is a major problem. Focused funds each hold ~25–30 stocks, so three of them together essentially recreate a regular diversified fund — but at higher expense ratios. This ~29% allocation is largely redundant.
You have both a Nifty 50 Index fund and Nippon India Large Cap Fund — the active large cap fund heavily overlaps with the index. You’re paying active management fees for near-identical exposure.
ELSS at 0.87% is too small to matter for tax savings under Section 80C. Either increase it or replace it with something meaningful.
11 funds is too many. Over-diversification kills alpha — you’re essentially holding a bloated, expensive index at this point.
Two small cap funds (Invesco + Groww) are relatively redundant.What to do
Trim to 5–6 funds: keep the Nifty 50 index, one focused fund, Motilal Large & Midcap, WhiteOak Mid Cap, one small cap, and the SBI Liquid fund. Drop the rest. This reduces overlap, lowers blended expense ratio, and makes the portfolio easier to track and rebalance. Increase ELSS if tax saving under 80C is a goal — or drop it entirely and use ELSS within one of the existing fund categories.
Note: I’m not a financial advisor — this is analytical observation, not personalized investment advice. Consider consulting a SEBI-registered advisor before making changes.
Thanks for your suggestions! I wanted to know why I shouldn’t choose focused funds? I’ve read that while they are more risky, they also provide higher returns. You might also be wondering why I’ve so many funds – actually I’ve heard a lot of people saying to invest in few funds(<5) but I want to kind of hedge my portfolio. Say if one large cap amc doesn’t works out then other one might work.
I understand that more funds = more exit load + more mgmt fees but I’m thinking on a 10year horizon. Will it really cost me significant money?
But I think you are other folks in this thread are largely right, I’ll reduce my funds for sure.
Could you share your perspective on the hedging logic though?
This is my new portfolio based on your suggestions.
AMC / Fund
Percentage
HDFC Nifty 50 Index Fund
8.40%
Nippon India Large Cap Fund
16.81%
Parag Parikh Flexi Cap Fund
16.81%
Invesco India Smallcap Fund
18.49%
WhiteOak Capital Mid Cap Fund
22.69%
SBI Liquid Fund
8.40%
SBI Gold Fund
8.40%
It’s still 7 but only 5 are equity based. I’m looking at an investment horizon of 10+ years and am great believer in India’s growth story and I want to ride that horse … Would love to hear your thoughts your thoughts on this. @Rishabh_Nair@duvvurib
