Restructured my SIP for FY26-27, going heavier on global this time. Rate my allocation?
Hey folks, looking for feedback before I commit to my SIPs for the coming year.
About me: In markets since 2016. Lived through two bull and two bear cycles, made mistakes, learned. MBA in finance so I can read macro/micro decently but no expert. Horizon 5 to 10 years, invest and largely forget. Do NOT want to rebalance every year unless something materially changes (manager exit, persistent underperformance, mandate drift). Light annual review at most.
My SIP allocation:
| Fund Type | Fund Name | Allocation |
|---|---|---|
| Index | HDFC Nifty 50 | 10% |
| Index | ICICI Nifty Next 50 | 15% |
| Flexi | PPFAS Flexi Cap | 15% |
| Mid Cap | Edelweiss Midcap | 15% |
| Small Cap | Bandhan Small Cap | 10% |
| Global | Axis Global Equity Alpha | 15% |
| Global | Edelweiss EM Opportunities | 10% |
| Global | Axis Global Innovation FoF | 5% |
| Thematic | Energy + Defence | 5% |
India 65% | Global 30% | Thematic 5%
The big shift: Moved global from 10% to 30%. Two reasons — (1) next leg of AI/innovation/EM re-rating is happening outside India while we're trading at premium valuations, (2) INR depreciation adds a quiet 3–5% tailwind on USD returns. Felt 10% was too small to actually move the needle.
Global cap composition (for those who'll ask): All 3 funds are ~85% global large cap, 12% mid, 3% small. So my global 30% is essentially global bluechips (Nvidia, Microsoft, TSMC, Samsung via underlying funds). Innovation FoF adds a thematic + mid-cap tilt. Complementary to Indian large caps (bank/FMCG/energy heavy) since global large caps are tech/semi/healthcare heavy.
Funds I'm exiting: Quant Small Cap and Quant Mid Cap. SEBI front-running probe shadow + current negative Sharpe + seven co-managers on one fund made me uncomfortable. Style worked in 2021–23, choppy market since has exposed momentum dependency. Anyone seeing it differently?
Risks I'm aware of:
- US and US-tech heavy via underlying Schroder funds. Single correction hits all 3 global funds.
- Entering global after a massive 2024–25 tech rally. Chasing the run?
- Thematic is cyclical and exit-timing is hard. 5% probably small enough not to hurt badly, but still.
- Portfolio is ~60–65% large cap overall (Indian index + global large cap + PPFAS). Well-spread or under-exposed to mid/small cap alpha?
Also considering starting a ₹5,000/month Gold SIP alongside this. Logic is gold as 5–8% portfolio hedge against inflation, INR depreciation, and equity drawdowns. Thinking Gold ETF (Nippon Gold BeES or HDFC Gold ETF) if I use demat, or Gold MF (Nippon/HDFC Gold Savings Fund) if I want pure automated SIP. Questions:
- Is ₹5K/month on top of the above equity SIPs sensible, or am I over-diversifying?
- ETF vs MF — which would you pick given 5–10 year horizon? ETF is ~25 bps cheaper but MF is easier for auto-SIP.
- Anyone holding Gold ETF/MF currently — happy with how it's playing its hedging role?
Looking for feedback on:
- Any fund you'd swap out?
- 25% in two index funds — too passive-heavy? Keeping both for Nifty 50 stability + Next 50 beta. Sensible?
- Is 30% global too aggressive?
- Thematic 5% in Energy + Defence — comfort or reckless?
- Mid + Small at 25% combined — too hot given current valuations?
- Anyone holding Bandhan Small Cap? Gunwani's record looks solid, AUM still nimble, but fund is only 6 years old so no deep bear test.
- PPFAS Flexi Cap — now over ₹1 lakh Cr AUM. Scale problem starting to show up?
Especially curious if anyone's actually moved their global allocation up in the last 12–18 months and how it's playing out. Open to "you're overthinking this" type replies too.
TL;DR: Shifting from 10% to 30% global on India 65 / Global 30 / Thematic 5 split. Dropping Quant funds. Aware of US-tech concentration and entering post-rally. Also thinking ₹5K/month Gold SIP (ETF vs MF?). Want feedback on fund selection and whether concentration risks are real or manageable for a 5–10 year SIP.
Thanks in advance.