Hello, I am 22 yr old ....I currently have 3 ongoing SIP of ?5,000 each in PPFAS Flexi cap, SBI Multi cap and Mirae Asset Multi cap, so a total of ?15,000 per month.
I have space for another ?5,000 sip but am a little confused to choose which fund. Please do suggest me.....and I plan to do SIP till I m 40 i.e 18 more years.
Ans: It's impressive that you've started investing at such a young age. Let's explore options to further diversify your SIP portfolio.
Understanding Your Investment Horizon:
With an investment horizon of 18 years until you turn 40, you have a significant time frame to benefit from the power of compounding and long-term growth potential.
Analyzing Current SIP Investments:
Your existing SIPs in PPFAS Flexi Cap, SBI Multi Cap, and Mirae Asset Multi Cap funds provide exposure to diversified equity portfolios, offering growth opportunities across market segments.
Considering Additional SIP Investment:
Given your desire to invest an additional ?5,000 per month, let's identify a suitable fund to complement your existing portfolio.
Exploring Fund Options:
Large-Cap Equity Funds: These funds invest in well-established, large-cap companies known for stability and consistent returns. They offer relatively lower risk compared to mid and small-cap funds.
Mid and Small-Cap Funds: These funds focus on investing in mid-sized and small-sized companies with high growth potential. While they carry higher risk, they also offer the potential for higher returns over the long term.
Sectoral or Thematic Funds: These funds invest in specific sectors or themes like technology, healthcare, or infrastructure. They provide targeted exposure to niche segments but come with higher risk due to sector-specific factors.
Aligning Fund Selection with Goals:
Consider your risk tolerance and investment objectives when selecting an additional SIP fund. Ensure that the chosen fund complements your existing portfolio and helps achieve your long-term financial goals.
Consultation with a Certified Financial Planner:
Engage with a Certified Financial Planner (CFP) to assess your risk profile, investment goals, and portfolio diversification. A CFP can provide personalized advice tailored to your individual circumstances.
Conclusion:
In conclusion, expanding your SIP portfolio with an additional ?5,000 investment offers an opportunity to further diversify and strengthen your long-term wealth-building strategy. By selecting a fund aligned with your risk tolerance and investment objectives, you can continue on the path towards financial success.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in