Am 34 yr old, I hav 60k income monthly & EPF 4k monthly. Am investing in PPF 2k, maxlife insurance Savings plan - 5k, UTI flexi cap fund - 2k, SBI contra- 0.5k & nippan India small cap- 0.5k since from year. Pls suggest any changes are required or else can i continue

Ans: CHANGE

Ans: It's great to see your proactive approach towards investing at such a young age. Your current investment portfolio demonstrates a balanced mix of equity, debt, and gold, which is a prudent strategy. Considering your age and risk appetite, adding a small or mid-cap SIP for at least 3 years can potentially enhance the growth potential of your portfolio. However, before making any changes, it's essential to reassess your financial goals, risk tolerance, and investment horizon. Additionally, consult with a Certified Financial Planner to ensure that your investment decisions align with your long-term objectives. Remember, investing is a journey, and it's crucial to stay disciplined, regularly review your portfolio, and make adjustments as needed to achieve your financial aspirations.

Ans: Hello Vivek. Considering your age factor and requirement , I would advise you to reconsider ICICI liquid fund and start investing in Large & mid cap for same AMC. Your rest portfolio report sounds good. Additionally, You can consider midcap fund for your future investment.

Ans: At 35 years old, it's commendable that you're actively investing in various financial instruments to secure your financial future. Let's review your current investment portfolio and assess if any changes are needed.

Maxlife Insurance Savings Plan:
Insurance savings plans typically offer a combination of insurance coverage and investment opportunities. While they provide life cover, they may not always offer optimal returns compared to pure investment options. It's essential to review the returns, charges, and benefits of your insurance plan regularly to ensure it aligns with your financial goals.

Insurance-cum-investment schemes (ULIPs, endowment plans) offer a one-stop solution for insurance and investment needs. However, they might not be the best choice for pure investment due to:

Lower Potential Returns: Guaranteed returns are usually lower than what MFs can offer through market exposure.
Higher Costs: Multiple fees in insurance plans (allocation charges, admin fees) can reduce returns compared to the expense ratio of MFs.
Limited Flexibility: Lock-in periods restrict access to your money, whereas MFs provide more flexibility.
MFs, on the other hand, focus solely on investment and offer:

Potentially Higher Returns: Investments in stocks and bonds can lead to higher growth compared to guaranteed returns.
Lower Costs: Expense ratios in MFs are generally lower than the multiple fees in insurance plans.
Greater Control: You have a wider range of investment options and control over asset allocation to suit your risk appetite.
Consider your goals!

Need life insurance? Term Insurance plans might be suitable.
Focus on growing wealth? MFs might be a better option due to their flexibility and return potential.

UTI Flexi Cap Fund:
Flexi cap funds invest across large-cap, mid-cap, and small-cap stocks, providing flexibility to capitalize on opportunities across market segments. As a diversified equity fund, it offers growth potential while spreading risk. Review the fund's performance, expense ratio, and portfolio composition periodically to ensure it remains suitable for your investment objectives.

SBI Contra Fund and Nippon Small Cap Fund:
SBI Contra Fund follows a contrarian investment approach, focusing on undervalued stocks with the potential for long-term growth. Nippon Small Cap Fund invests primarily in small-cap companies with high growth potential. Both funds carry higher risk due to their investment in mid and small-cap stocks. Review their performance, risk profile, and consistency to ensure they align with your risk tolerance and investment horizon.

Overall, your investment portfolio appears to be diversified across insurance, large-cap, flexi-cap, and small-cap funds. However, it's essential to periodically review your portfolio's performance, risk exposure, and alignment with your financial goals. Consider the following suggestions:

Regularly monitor the performance of each investment and compare it against relevant benchmarks.
Assess your risk tolerance and ensure that your portfolio allocation aligns with your risk appetite.
Review the expense ratios and charges associated with each investment to optimize your returns.

Consider rebalancing your portfolio periodically to maintain diversification and align with changing market conditions.

Consult with a Certified Financial Planner to receive personalized advice tailored to your financial situation and goals.

In conclusion, while your current investment portfolio appears diversified, it's essential to review and adjust it periodically to ensure it remains aligned with your financial objectives. Continuously educate yourself about investment options and seek professional guidance when needed to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in