Sample investor (made-up portfolio): what to keep, what to change, and why
Retirement · horizon 20 years (2046) · risk profile aggressive · PAN – · from a sample CAS (made-up portfolio). Ratings as of 2026-11-11; fund portfolios from 2026-10.
In short
- ₹7.00 lakh sits in arbitrage/liquid funds earning about what a liquid fund pays. For a aggressive profile with this horizon, it moves into equity through a weekly transfer over 6 months.
- 6 funds to exit (₹11.50 lakh): rated C, breaking their category's rules, or too small to matter.
- New SIPs go only to A/A+ rated funds, one per fund house: Invesco India Large Cap Fund, Mahindra Manulife Small Cap Fund, HSBC Midcap Fund, Motilal Oswal Focused Fund.
- 4 funds are held as they are. Selling a sound fund costs tax and buys little.
The shape of the portfolio
How the money is split by type of fund: today, the target for this goal and risk profile, and after 12 months of the plan (before market moves).
| Sleeve | Today | Target | In 12 months |
|---|---|---|---|
| Large cap and index | 13% | 13% | 12% |
| Flexi, multi and focused | 33% | 30% | 29% |
| Mid and large & mid cap | 21% | 26% | 25% |
| Small cap | 9% | 17% | 16% |
| Sectoral and thematic | 2% | 0% | 2% |
| Parked (arbitrage, liquid) | 21% | 15% | 15% |
Today
In 12 months
What the equity actually owns
Adding up every fund's own portfolio:
| Companies | Today | In 12 months |
|---|---|---|
| Large caps | 52% | 43% |
| Mid caps | 24% | 27% |
| Small caps | 17% | 23% |
Every fund, and what to do with it
| Fund | Value | Rating | Verdict | Why |
|---|---|---|---|---|
| ICICI Prudential Large Cap Fund (erstwhile Bluechip Fund) - Regular Plan - Growth Large Cap · Regular | ₹4.50 lakh | C · 29/30 | Exit | rated C in Large Cap (rank 29 of 30) When: now for ₹315,000 (units over a year old; cost ₹0); the remaining ₹135,000 on or after 13 Oct 2027, when its tax and exit load fall (selling it all today would cost ₹3,423) |
| Parag Parikh Flexi Cap Fund - Regular Plan - Growth Flexi Cap · Regular | ₹2.50 lakh | C · 33/36 | Exit | rated C in Flexi Cap (rank 33 of 36) When: now for ₹150,000 (units over a year old; cost ₹0); the remaining ₹100,000 on or after 13 Oct 2027, when its tax and exit load fall (selling it all today would cost ₹2,535) |
| HDFC Mid Cap Fund - Regular Plan - Growth Mid Cap · Regular | ₹1.50 lakh | C · 24/28 | Exit | rated C in Mid Cap (rank 24 of 28) When: now for ₹21,429 (units over a year old; cost ₹0); the remaining ₹128,571 on or after 13 Oct 2027, when its tax and exit load fall (selling it all today would cost ₹3,260) |
| Nippon India Small Cap Fund - Regular Plan - Growth Small Cap · Regular | ₹1.20 lakh | C · 20/25 | Exit | rated C in Small Cap (rank 20 of 25) When: on or after 13 Oct 2027, when its tax and exit load fall (selling today would cost ₹2,771) |
| HDFC Multi Cap Fund - Regular Plan - Growth Multi Cap · Regular | ₹1.00 lakh | C · 22/23 | Exit | rated C in Multi Cap (rank 22 of 23) When: on or after 13 Oct 2027, when its tax and exit load fall (selling today would cost ₹2,080) |
| ICICI Prudential Business Cycle Fund - Regular Plan - Growth Sectoral/Thematic · Regular | ₹80,000 | C · 9/10 | Exit | rated C in Thematic: Business Cycle (rank 9 of 10) When: on or after 13 Oct 2027, when its tax and exit load fall (selling today would cost ₹1,477) |
| Kotak Arbitrage Fund - Regular Plan - Growth Arbitrage · Regular | ₹7.00 lakh | A · 4/26 | Move to equity | parked money: earns about what a liquid fund pays |
| HSBC Midcap Fund - Regular Plan - Growth Mid Cap · Regular | ₹3.00 lakh | A · 2/28 | Add | rated A (rank 2 of 28 in Mid Cap) |
| HDFC Flexi Cap Fund - Regular Plan - Growth Flexi Cap · Regular | ₹6.00 lakh | B · 13/36 | Hold, no new money | rated B: held, but new money goes to A/A+ funds |
| Mirae Asset Large & Midcap Fund - Regular Plan - Growth Large & Mid Cap · Regular | ₹2.50 lakh | B · 15/26 | Hold, no new money | rated B: held, but new money goes to A/A+ funds |
| SBI SMALL CAP FUND - Regular Plan - Growth Small Cap · Regular | ₹2.00 lakh | B · 14/25 | Hold, no new money | rated B: held, but new money goes to A/A+ funds |
| Axis ELSS- Tax Saver Fund - Regular Plan - Growth ELSS · Regular | ₹1.80 lakh | B · 11/37 | Hold, no new money | rated B: held, but new money goes to A/A+ funds |
What to do, in order
- Start the monthly SIPs (stop SIPs into any fund not listed here):
Fund Rating Monthly Invesco India Large Cap Fund (Regular)
Large Cap · Invesco Mutual FundA+ · 1/30 ₹10,000 Mahindra Manulife Small Cap Fund (Regular)
Small Cap · Mahindra Manulife Mutual FundA+ · 1/25 ₹9,000 HSBC Midcap Fund (Regular)
Mid Cap · HSBC Mutual FundA · 2/28 ₹7,500 Motilal Oswal Focused Fund (Regular)
Focused · Motilal Oswal Mutual FundA+ · 1/27 ₹3,500 - Move parked money into equity through a weekly STP from Kotak Arbitrage Fund - Regular Plan - Growth, over 6 months (about 26 weekly transfers). Exit proceeds and any lump sum follow the same split:
Into Total Each week HSBC Midcap Fund (Regular) ₹1.62 lakh ₹6,212 Invesco India Large Cap Fund (Regular) ₹2.01 lakh ₹7,718 Mahindra Manulife Small Cap Fund (Regular) ₹1.85 lakh ₹7,130 Motilal Oswal Focused Fund (Regular) ₹77,868 ₹2,995 A transfer out of an arbitrage fund is a sale: units held under a year pay 20% tax on their (small) gain. Spreading over months means buying through ups and downs instead of on one day.
- Exit these funds, at the time shown, and use the money as in step 2:
Fund Value When Tax + exit load ICICI Prudential Large Cap Fund (erstwhile Bluechip Fund) - Regular Plan - Growth ₹4.50 lakh now for ₹315,000 (units over a year old; cost ₹0); the remaining ₹135,000 on or after 13 Oct 2027, when its tax and exit load fall (selling it all today would cost ₹3,423) ₹3,423 Parag Parikh Flexi Cap Fund - Regular Plan - Growth ₹2.50 lakh now for ₹150,000 (units over a year old; cost ₹0); the remaining ₹100,000 on or after 13 Oct 2027, when its tax and exit load fall (selling it all today would cost ₹2,535) ₹2,535 HDFC Mid Cap Fund - Regular Plan - Growth ₹1.50 lakh now for ₹21,429 (units over a year old; cost ₹0); the remaining ₹128,571 on or after 13 Oct 2027, when its tax and exit load fall (selling it all today would cost ₹3,260) ₹3,260 Nippon India Small Cap Fund - Regular Plan - Growth ₹1.20 lakh on or after 13 Oct 2027, when its tax and exit load fall (selling today would cost ₹2,771) ₹2,771 HDFC Multi Cap Fund - Regular Plan - Growth ₹1.00 lakh on or after 13 Oct 2027, when its tax and exit load fall (selling today would cost ₹2,080) ₹2,080 ICICI Prudential Business Cycle Fund - Regular Plan - Growth ₹80,000 on or after 13 Oct 2027, when its tax and exit load fall (selling today would cost ₹1,477) ₹1,477 Long-term equity gains up to ₹1.25 lakh a financial year are tax-free; the costs above use what is left of this year's limit. Where purchase dates are unknown, the range runs from 'all units over a year old' to 'all under a year'.
- Leave the rest alone. Funds marked Hold stay; no new money goes to funds marked 'Hold, no new money'.
These SIPs are in Regular plans. Aeterna is paid a commission by the fund house, included in the plan's expense ratio; you pay us no separate fee. All returns and ratings in this report are after each fund's costs.
Why the shape changes
Every change of shape has a reason, a cost and a condition under which we would undo it.
Small cap: 9% now → 16% in 12 months (target 17%)
- What changes
- Small Cap 9% → 16%
- Why it suits this plan
- A aggressive profile with 20 years to the goal puts 17% here. The sleeve is under-weight, so new money goes here first.
- What it costs
- about ₹2,771
- We would reverse it if
- the goal comes within 7 years, or a 35-45% fall in small caps would force a sale
- The evidence, and its limits
- Fund choices use our track-record ratings, which describe the past and are not a forecast; the case for the change rests on the client's goal and risk, not on recent returns.
Parked (arbitrage, liquid): 21% now → 15% in 12 months (target 15%)
- What changes
- Arbitrage 21% → 15%
- Why it suits this plan
- A aggressive profile with 20 years to the goal puts 15% here. This horizon doesn't need cash-like money: it earns about what a liquid fund pays while the equity sleeves are short of target, so it moves into them step by step.
- What it costs
- nothing: it is done with new money
- We would reverse it if
- the goal is more than 3 years away and the client is comfortable with equity swings
- The evidence, and its limits
- Fund choices use our track-record ratings, which describe the past and are not a forecast; the case for the change rests on the client's goal and risk, not on recent returns.
Focused: 0% → 3%
- What changes
- Focused funds invest in at most 30 stocks, any size.
- Why it suits this plan
- added because the sleeve needs new money and the best-rated eligible fund is in this category
- What it costs
- see the exits table
- We would reverse it if
- the category's funds return to an A rating or the client's needs change
- The evidence, and its limits
- A category change follows from fund verdicts and the target shape, not from the category's recent returns.
Where this could lead
In 20 years, with a ₹30,000 monthly SIP. Each line is 5,000 simulated futures built from real 12-month stretches of Indian fund history (Feb 2008 to Oct 2026), using each category's median fund. A range from history, not a forecast.
| Bad case (1 in 10) | Middle | Good case (1 in 10) | Chance of reaching the goal | |
|---|---|---|---|---|
| Today's mix | ₹3.15 crore | ₹6.34 crore | ₹14.51 crore | 26% |
| This plan | ₹3.21 crore | ₹6.57 crore | ₹15.58 crore | 28% |
Goal: ₹3.00 crore in today's money is about ₹9.62 crore in 2046, at 6% inflation a year.
A 70% chance needs about ₹91,000 a month. A 85% chance needs about ₹1.25 lakh a month.
Category medians include their costs; real results depend on the funds chosen, on when money goes in, and on future markets, which may be worse than any period in this history.
Overlap and concentration
Share of the portfolio two funds hold in common (above 50%, they are close to one bet):
| Mirae Asset Large & Midcap Fund + Invesco India Large Cap Fund | 29% |
| Parag Parikh Flexi Cap Fund + Mirae Asset Large & Midcap Fund | 25% |
| Parag Parikh Flexi Cap Fund + Invesco India Large Cap Fund | 21% |
| Invesco India Large Cap Fund + Motilal Oswal Focused Fund | 18% |
| Mirae Asset Large & Midcap Fund + Motilal Oswal Focused Fund | 14% |
| Nippon India Small Cap Fund + Mirae Asset Large & Midcap Fund | 12% |
| SBI SMALL CAP FUND + Nippon India Small Cap Fund | 10% |
| Nippon India Small Cap Fund + Invesco India Large Cap Fund | 8% |
Equity by fund house after the plan: HDFC 27%, HSBC 18%, Invesco 10%, Mahindra Manulife 9%, Mirae Asset 8%, SBI 6%, Axis 6%, ICICI Prudential 4%, Nippon India 4%, Motilal Oswal 4%, PPFAS 3%
What we watch, and when we look again
- Every month (after ratings update on the 11th and 16th): any fund held falling to C, a mandate breach, a fund manager change or a merger.
- Any sleeve more than 5% points (or 25%) away from its target, checked at each review and after any 20% market move. New money corrects it first.
- The glide path: from 2041, money moves from equity to debt or arbitrage each year so that a fall close to the goal does not derail it.
- Next full review: November 2027, or sooner if income, goals or plans change.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Ratings describe past performance and are not a forecast. Aeterna Wealth Private Limited is an AMFI-registered mutual fund distributor (ARN-317889), not a SEBI-registered investment adviser; these suggestions are incidental to distribution. Tax figures are estimates under the rules in force on 12 Nov 2026; confirm with your tax adviser before acting. Exit loads use typical values unless the scheme's own is on file.