Hi I am 31. Me and my partner earn 75k monthly. Rent and other expenses come around 25k (which we can't cut down) Currently we are doing MF 10k (current holding 1,65,000) , a chit 10k, NPS 4.5k, LIC 2k. Have savings of 4lakhs and 16k in stocks. Other 25k I am using to repay my loans which will be cleared by September. Where can I invest 25k monthly from October. Kindly suggest the better option I am ready to take risk

Ans: Evaluating Your Current Financial Situation and Investment Opportunities

You and your partner earn Rs 75,000 monthly, with expenses around Rs 25,000. This leaves a surplus for investments. Your current investments include mutual funds, a chit fund, NPS, LIC, and some savings in stocks. Additionally, you will clear your loans by September, freeing up Rs 25,000 monthly for new investments.

Current Investments
Mutual Funds: You invest Rs 10,000 monthly, with a current holding of Rs 1,65,000.

Chit Fund: You invest Rs 10,000 monthly.

National Pension System (NPS): Your contribution is Rs 4,500 monthly.

Life Insurance (LIC): You contribute Rs 2,000 monthly.

Savings and Stocks: You have Rs 4 lakhs in savings and Rs 16,000 in stocks.

Loan Repayment
You allocate Rs 25,000 monthly for loan repayment, which will be cleared by September. Post-September, you will have this amount available for new investments.

Investment Goals and Risk Appetite
With your loans cleared and a willingness to take risks, you can focus on growth-oriented investments. Let's explore suitable options for investing Rs 25,000 monthly from October.

Diversified Mutual Fund Portfolio
Mutual funds are a great way to diversify your investments. Continue your current SIPs and consider increasing your monthly investment. Here's how to diversify further:

Large-Cap Funds
Large-cap funds invest in well-established companies. These funds provide stability and steady growth. They are less risky compared to mid-cap and small-cap funds.

Mid-Cap and Small-Cap Funds
Mid-cap and small-cap funds invest in medium-sized and smaller companies, respectively. They offer higher growth potential but come with increased risk. Allocating a portion of your investments here can boost your returns.

Flexi-Cap Funds
Flexi-cap funds invest across market capitalizations. They offer flexibility and diversification, balancing risk and returns.

International Funds
Investing in international funds diversifies your portfolio globally. This reduces country-specific risks and provides exposure to global growth opportunities.

Actively Managed Funds
Actively managed funds can outperform index funds. These funds benefit from professional management and the ability to adapt to market changes. They aim for higher returns through strategic investments.

Stocks and Equity Investments
Direct equity investments offer high returns but come with high risks. With your risk tolerance, consider the following strategies:

Blue-Chip Stocks
Invest in blue-chip stocks of well-established companies. They provide steady growth and dividend income.

Growth Stocks
Growth stocks belong to companies with high growth potential. They offer significant returns but are riskier.

Regular Monitoring and Rebalancing
Regularly review and rebalance your stock portfolio. This ensures alignment with your investment goals and risk tolerance.

Systematic Investment Plans (SIPs)
SIPs are a disciplined way to invest regularly. Increase your SIP contributions from October. This leverages the power of compounding and enhances your investment corpus over time.

National Pension System (NPS)
Continue your NPS contributions for retirement planning. NPS provides tax benefits and long-term growth through equity and debt investments.

Emergency Fund
Maintain an emergency fund covering 6-12 months of expenses. This ensures financial stability during unforeseen circumstances. Keep a portion of your savings liquid for this purpose.

Health and Life Insurance
Ensure adequate health and life insurance coverage. This protects you and your family from financial burdens due to medical emergencies or unforeseen events.

Tax Efficiency
Optimise your investments for tax efficiency. Utilise tax-saving instruments and strategies to reduce your tax liability, thereby increasing your net returns.

Professional Guidance
Consult a Certified Financial Planner for personalised advice. They provide tailored strategies to help you achieve your financial goals. Their expertise can guide you in navigating complex financial decisions.

Regular Reviews and Adjustments
Regularly review your financial plan. Market conditions, personal circumstances, and financial goals change over time. Adjust your investment strategy as needed to stay on track.

Conclusion
Your disciplined investment approach and willingness to take risks are commendable. With strategic adjustments and continued contributions, you can achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in