A Chennai investor is trimming a 30-fund lineup and debating whether a couple of index bets plus a US sliver can beat a mountain of active picks. The core question: can simplification cut costs and headaches without erasing returns? [1]
• Current mix – The holding list reads like a fund shelf tour: HSBC Value Fund Direct Growth; Axis Small Cap Fund Direct Growth; Motilal Oswal Flexicap Direct IDCW; plus on/off sleeves like Motilal Oswal S&P 500 Index and Motilal Oswal Nasdaq-100 FoF Direct (both on RBI hold since Jan 2025). Add Axis ELSS Regular Growth and DSP ELSS Regular Growth. Total performance traces back to solid but varied results; the overall XIRR sits at 17.88% [1].
• Indexing pathway – The investor asks if consolidating into 2-3 index funds makes sense, featuring Nifty 50 and Nifty Next 50 with a single US sleeve. The idea is plain: simplify, reduce overlap, and lower costs. [1]
• ELSS move – Two ELSS funds matured: Axis ELSS Regular Growth and DSP ELSS Regular Growth. The question is whether to keep them or switch into core funds to trim expenses and avoid duplication [1].
• LIC policy decision – The LIC money-back policy offers low surrender value, prompting a choice: keep paying, make it paid-up, or surrender? The decision taps into liquidity and risk planning [1].
• What's at stake – With an overall profile like this, the real question is whether cost-efficient indexing will gain traction among Indian retail investors, versus sticking with active, bespoke picks [1].
Closing thought: Simplification is in the air, but the move hinges on costs, taxes, and personal goals. Watch how more Indian investors balance risk and paperwork with the rise of index strategies.
References
Need a portfolio review. 30M, too many funds? Check my logic.
30-year-old seeks portfolio simplification; questions consolidation into index funds, US exposure, ELSS role, LIC policy, risk tolerance, horizon and goals.
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