I am 31yrs old working in a PSU. I've been investing in MFs for about 4 yrs and have already accumulated 9.5 lakh thru them. My SIP investments in MFs are as follows:

1. IDFC nifty 50 Index fund - 3k

2. Quant active fund- 2k

3. Quant small cap fund- 3k

4. Mirae asset emerging bluechip fund- 2k

5. Axis bluechip fund- 2k

6. SBI small cap fund- 2k

All the investments are direct and growth type in nature. Also I plan to increase my investments by 5-10% every year.

My questions are as follows:

1. I want to create a corpus of about 10 crores during my retirement ie 60yrs of age. Is my investment sufficient?

2. Is my asset allocation balanced, meaning covering all sectors and all caps?

3. Do I need to invest in any other type of investment funds/schemes?

Ans: Portfolio is fine and it's good that you have started investing early. For moderate risk you may look at hybrid funds in balanced advantage category.

Ans: PPF: corpus will be Rs 1 crore

SS: Corpus Rs 4 lakh

MF: Corpus will be Rs 1.45 crore

Total in next 7 years will be nearly Rs 2.5 crore.

Ans: Funds are good, with monthly investment of 56500, the corpus that can created in 15 years is 3.1 cr

Ans: Hello Value Investor. I can see over diversification with your current investments with sip amount. I would suggest to concise your mf investments and reshuffle the portfolio. Additionally, reconsider Aditya Birla Sun Life Tax Relief 96 Fund , Axis Long Term Equity Fund and SBI Focused Equity Fund for your portfolio. You can achieve your target till retirement with your current sip amount.

Ans: It's commendable that you've been consistently investing in mutual funds through SIPs for several years, laying a strong foundation for your retirement. Let's evaluate your current investment strategy and make adjustments to align with your retirement goal.

Your portfolio reflects a diversified mix of small-cap, mid-cap, and flexi-cap funds, which offer growth potential over the long term. However, given your goal of building a substantial corpus for retirement, we may need to reassess your asset allocation and make some adjustments.

Firstly, let's review your SIP amounts and consider increasing them gradually to accelerate wealth accumulation. Since your SIPs increase by 5% to 10% annually, this incremental growth can boost your investment corpus significantly over time.

Consider reallocating some of your SIP amounts to funds with a proven track record of consistent performance and lower volatility. While small-cap and mid-cap funds can offer higher returns, they also come with increased risk. Diversifying across large-cap funds or balanced funds can provide stability to your portfolio.

Moreover, review your overall asset allocation to ensure it remains aligned with your risk tolerance and investment objectives. While equity investments offer growth potential, it's essential to balance them with fixed-income securities like debt funds or PPF to mitigate risk.

Given your age and retirement horizon, periodically reassess your investment strategy and make necessary adjustments to stay on track towards your goal. Consider consulting with a Certified Financial Planner to develop a personalized retirement plan tailored to your needs and aspirations.

In conclusion, by fine-tuning your investment strategy, increasing your SIP amounts, and maintaining a disciplined approach, you can work towards achieving your retirement goal of building a corpus of Rs 6 - 7 crores by the age of 58.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in