Flexi cap =14000,
HDFC Balance Advantage Fund - Direct plan- Growth = 2000
Lage and Midcap Fund= 6500
Midcap Fund= 3000
Nifty Smallcap 250 Index Fund= 1000
Small Cap= 2500
Nifty 500 Momentum 50 ETF= 1000
Sector Fund ( Energy + Bussniss Cycle )= 3000
Current Corpus = 9 lakh , one home loan 8.50L ( 2 kids= 14 and 6 old)
2Cr after 15 years and 50 lakh after 10 years , plz suggest
Ans: You are already investing in multiple mutual funds. Your target corpus is Rs?2?crore in 15 years and Rs?50?lakh in 10 years. You also have a home loan of Rs?8.5?lakh and 2 kids aged 14 and 6.
Let’s assess your situation and restructure it with a 360-degree, goal-oriented, simple language plan.
? Understand Your Monthly SIP Structure
– Flexi Cap: Rs?14,000
– Balanced Advantage: Rs?2,000
– Large & Mid Cap: Rs?6,500
– Mid Cap: Rs?3,000
– Small Cap: Rs?2,500
– Nifty Smallcap 250 Index: Rs?1,000
– Nifty 500 Momentum 50 ETF: Rs?1,000
– Sector Funds (Energy + Business Cycle): Rs?3,000
Total SIP: Rs?33,000 per month. Corpus now is Rs?9?lakh.
? First Issue: Over-diversified Fund Portfolio
– You are in too many funds.
– Some of them are overlapping.
– Index and ETF investments also dilute focus.
– Sector funds and thematic funds are not suitable for goal planning.
– They are risky and not diversified.
Having 7–8 funds increases confusion, not returns.
? Second Issue: You Hold Index and ETF Funds
– Nifty Smallcap 250 Index is unmanaged and volatile.
– It tracks the index without protection.
– ETF (Momentum 50) also depends on short-term trends.
– They work only in rising markets.
– In flat or falling markets, they drop fast.
Actively managed funds are better for long-term goals.
A Certified Financial Planner can guide your allocation.
? Third Issue: Sector and Theme-Based Funds
– Sector funds are risky and cyclical.
– Energy or Business Cycle funds are for advanced investors.
– They are not suitable for education or retirement goals.
– Sectors may underperform for long periods.
– You don't need them for goal-based planning.
Better to exit sector funds and shift to core diversified equity.
? Fourth Issue: Lack of Defined Goal Buckets
– You aim for Rs?50?lakh in 10 years.
– You also aim for Rs?2?crore in 15 years.
– But the current fund setup doesn’t align clearly.
– You must split SIPs for each goal.
– Each goal should have its own mix of funds.
Without goal buckets, tracking and reviewing becomes difficult.
? Fifth Issue: No Mention of Emergency Fund
– You have a home loan to repay.
– You have school-going kids.
– But there is no emergency buffer shown.
– Emergency fund should be equal to 6–12 months’ expenses.
– Park this in liquid or ultra-short term funds.
Emergency savings protect investments from being disturbed.
? Suggested Mutual Fund Portfolio Restructuring
Let us simplify your SIP basket.
Remove these from portfolio:
– Nifty Smallcap 250 Index
– Momentum 50 ETF
– Both Sector funds
Keep and continue:
– Flexi Cap Fund
– Large & Mid Cap Fund
– Mid Cap Fund
– Balanced Advantage Fund
– Small Cap Fund (with smaller exposure)
Now divide SIPs in buckets:
For Rs?50?Lakh Goal in 10 Years:
– Large & Mid Cap Fund (Rs?7,000)
– Flexi Cap Fund (Rs?7,000)
– Balanced Advantage Fund (Rs?3,000)
Total = Rs?17,000/month
For Rs?2?Crore Goal in 15 Years:
– Mid Cap Fund (Rs?4,000)
– Small Cap Fund (Rs?3,000)
– Flexi Cap Fund (Rs?3,000)
– Large & Mid Cap Fund (Rs?3,000)
– Balanced Advantage Fund (Rs?3,000)
Total = Rs?16,000/month
This separation makes goal tracking clear and efficient.
? Continue SIPs Through Regular Plans via MFD
– Direct plans lack support.
– Regular plans through a CFP or MFD give guidance.
– Helps manage volatility and stay invested.
– Better asset allocation and exit strategy.
Emotional discipline and handholding increase wealth over years.
? Equity Mutual Fund Taxation
– Long Term Capital Gains (LTCG) above Rs?1.25?lakh/year taxed at 12.5%.
– Short-term gains taxed at 20%.
– Plan redemptions smartly to reduce tax burden.
A Certified Financial Planner can optimise exit strategy for minimum tax.
? Home Loan vs Investment
– Your home loan is Rs?8.5?lakh.
– Don’t prepay aggressively.
– Let SIPs run and grow long-term wealth.
– Only part-prepay if cash is idle.
Low-interest home loans help create tax benefits.
? Children’s Education Planning
– Elder child may need college funds in 4 years.
– Use part of your Rs?9?lakh corpus here.
– Shift Rs?3–4?lakh to a short-term debt fund.
– This keeps funds safe and ready.
Don’t keep child education corpus in equity now.
? Retirement Planning Outlook
– Rs?2?crore goal in 15 years is achievable with Rs?16k/month SIP.
– You must increase SIP every year.
– Even a 5–10% increase can improve returns.
– Your EPF/PPF can also support retirement corpus.
Combine mutual funds with PF benefits for better retirement readiness.
? Insurance Protection Review
– No mention of term insurance.
– Buy Rs?1 crore term plan now.
– You have 2 kids and a home loan.
– This is non-negotiable.
– Premium is low if taken early.
Separate protection gives peace of mind to family.
? Importance of Annual Review
– Fund performance needs yearly check.
– Some funds may need to be changed.
– Risk appetite may change.
– Goals may shift.
Annual check with Certified Financial Planner keeps your plan healthy.
? Final Insights
– Reduce the number of funds to avoid overlap.
– Exit index, ETF, and sector funds.
– Focus only on actively managed, diversified equity mutual funds.
– Make separate SIPs for each goal.
– Continue home loan EMIs, avoid prepaying.
– Build emergency fund now.
– Use regular mutual fund plans via CFP or MFD.
– Start term insurance immediately.
– Review fund performance and progress every year.
You have a solid start. A clear structure and consistent investing will achieve both your goals safely.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Question by Veddant on Jul 18, 2024Hindi
