Don’t have a too aggressive portfolio if you are a beginner
An investor, aged 43, sought advice after creating a portfolio for his sister consisting largely of smallcap and microcap funds — including HDFC Flexicap, Kotak Midcap, Bandhan Smallcap, and a ₹5 lakh lump-sum investment in Motilal Oswal Microcap Fund.
Calling the allocation “extremely aggressive,” Jain said if he’s okay with volatility, it’s fine. But for a first-time investor, the smallcap-heavy mix can be risky. A larger allocation to largecap funds or passive index options like UTI Nifty 50 or DSP Nifty 50 would be safer.”
She estimated that with a 12% annual return, the investor could accumulate ₹4.75 crore in 15 years if the portfolio is managed well with periodic top-ups.
Midcap and smallcap Investors must stay for the long term
For another viewer, Jain reiterated that smallcap and contra funds require longer investment horizons. “If your goal is within five years, shift gradually to hybrid or debt-oriented schemes,” she advised.
A 26-year-old investor aiming for ₹1.75 crore in 17 years was told to increase his SIP contributions and maintain a balanced mix of ICICI Largecap, SBI Large & Midcap, and Tata Smallcap funds, with longer time horizons for smallcaps.
Want to build ₹5 crore corpus? Raise your equity exposure
Another query from Satheesh Meleppat in Bengaluru, targeting a ₹5 crore corpus in 8–10 years, prompted Jain to suggest a sharp SIP increase.“He’ll need to invest roughly ₹2.5 lakh per month to meet that target,” she noted.
Jain recommended increasing exposure to equity via Parag Parikh Flexicap, UTI Nifty 50, or DSP Nifty 50, while limiting liquid fund allocations unless used for emergency reserves.
NFOs are not always a great deal at NAV ₹10
On a question about New Fund Offers (NFOs), Jain warned investors not to fall for the “NAV ₹10” illusion.
“An NFO is worth considering only if it adds something unique to your portfolio — not just because it’s new,” she said, advising investors to cap NFO exposure at 5–7% of the total portfolio.
Goal-based planning: Education vs. home renovation
For a 35-year-old investor from Punjab saving for his daughter’s education and home renovation, Jain recommended separating timelines and using hybrid and bond funds for short-term goals.
“Prioritize long-term education goals over renovation. If needed, a home loan or renovation loan could be better than a personal loan,” she suggested.
Expert takeaways
Jain’s repeated message was clear — diversification, discipline, and goal-based investing trump excitement and trend-chasing.
“Investors must stop chasing returns and start aligning portfolios with their life goals and risk appetite,” she said.