Currently, I am investing in MF as below with XIRR 17.58%
Mirae Asset Large & Midcap Fund Direct Growth Rs 2000
Mirae Asset ELSS Tax Saver Fund Direct Growth Rs 4000
ICICI Prudential Equity & Debt Fund Direct Growth Rs 4000
Canara Robeco ELSS Tax Saver Direct Growth Rs 4000
Canara Robeco Large Cap Fund Direct Growth Rs 2000
Quant Active Fund Direct Growth Rs 5000
Parag Parikh Flexi Cap Fund Direct Growth Rs 2000
Please suggest if any change is required. I am looking for retirement fund with minimum 4 CR and looking for my child education 2 CR.
Ans: Your Financial Goals
Retirement fund target: Rs 4 Crores
Child’s education fund target: Rs 2 Crores
You have not mentioned the time horizon for both.
For now, we will assume:
Retirement goal – 15 to 20 years away
Education goal – around 10 to 12 years away
These are long-term goals and require consistent and strategic equity exposure.
Current SIP Portfolio Review
Let’s assess your current monthly SIP of Rs 25,000:
Mirae Asset Large & Midcap – Rs 2,000
This category balances stability and growth. Keep allocation minimal.
Mirae Asset ELSS – Rs 4,000
ELSS funds have 3-year lock-in. Useful only if you need tax benefit.
Avoid more than one ELSS fund.
ICICI Equity & Debt Fund – Rs 4,000
Hybrid funds reduce volatility. But not ideal for aggressive long-term growth.
Canara Robeco ELSS – Rs 4,000
You already have one ELSS. Two ELSS schemes dilute focus.
Canara Robeco Large Cap – Rs 2,000
Large caps give stability. Allocation is fine.
Quant Active – Rs 5,000
High-risk, high-return style. Can keep limited exposure.
Parag Parikh Flexi Cap – Rs 2,000
Well-managed diversified fund. Suitable for long-term.
Key Observations and Suggestions
Too Many Funds
Seven funds for Rs 25,000 monthly is excessive.
It spreads your money too thin.
Each fund needs minimum size to show results.
Duplicate Categories
Two ELSS funds. Avoid duplication.
If tax saving is not your aim, ELSS is unnecessary.
Overuse of Direct Funds
Direct funds may look cheaper.
But they offer no human support during market crashes.
Investors make emotional exits at wrong times.
Regular funds via Certified Financial Planner and MFD provide personalised support.
Direct fund route is risky for goal-based investing without expert review.
Avoid Index or ETF Investing
Index funds just copy the index.
They cannot outperform.
During correction phases, they fall more and recover slower.
Active funds are better. Fund managers can protect and grow your money.
ETFs are just index funds traded like shares.
They offer no advisory support and involve price volatility.
Recommended Portfolio Restructure
Here is a simplified suggestion:
One Flexicap Fund (for core long-term growth)
One Midcap Fund (for long-term wealth creation)
One Hybrid Aggressive Fund (to reduce volatility in short-term)
Optional: One ELSS Fund (only if you need Sec 80C deduction)
This way, you manage risk and get better returns with less complexity.
How to Allocate Your SIPs Wisely
Flexicap Fund – Rs 10,000
Midcap Fund – Rs 7,000
Hybrid Aggressive Fund – Rs 5,000
ELSS Fund – Rs 3,000 (only if required for tax)
This structure gives direction, clarity and growth focus.
Review Your Fund Performance Periodically
Don’t judge a fund by 1-year returns
See rolling performance across 3, 5 and 7 years
Check fund house stability, manager consistency
Avoid switching funds too frequently
Are Your SIPs Enough for Your Goals?
For Rs 2 Cr education fund in 12 years, you need focused allocation
For Rs 4 Cr retirement in 20 years, SIPs need to grow gradually
Current SIP of Rs 25,000/month may not be enough for both
You may need to increase it by 10% every year
As income grows, increase SIPs. Also do lumpsum whenever possible.
Track the gap between required and actual corpus annually.
Secure Your Child’s Future Better
You already have SIPs and term insurance.
Add a dedicated child fund (not child ULIP or plan from insurer)
Choose pure mutual funds.
Invest regularly. Track goals yearly.
Avoid gold ETF for child’s future. It doesn’t match education cost inflation.
About Your Term Insurance
You didn’t mention coverage amount
For Rs 6 Cr of goals, ideal cover is 12 to 15 times your income
Keep your term cover separate from investment
Review the policy every 3 to 5 years
Final Insights
Restructure funds. Avoid duplication and unnecessary direct funds
Use actively managed regular funds via CFP and MFD
Build child’s education corpus with discipline
Retirement corpus target is realistic. Increase SIPs gradually
Track fund performance every 6 months.
Do not mix insurance with investment.
Avoid ETF and Index Funds for wealth building
Maintain asset allocation. Review annually
Keep emergency fund in liquid fund or short-term plan
What You Can Do Next
Consolidate your funds
Consult a Certified Financial Planner to create a personalised goal tracker
Shift to a guided MFD platform that gives you regular review
Reinvest ELSS redemption amount after 3 years in the new structure
Ensure you have health insurance too – not mentioned above
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment