Hi Sir I am 38 years old and I want to know about my Portfolio is in good shape and i want to know my portfolio worth after 25 Years following are my investments :- 1 : LIC at age 60 i will be receiving 1 crore through various guaranteed plans 2 : EPF : it will be near about 1 Crore 3 : PPF : 12500 per month these are my guaranteed plan till date i have Mutual fund portfolio of 6 Lac and im a aggressive investor MF details are 1 Kotak small Cap : 5000 2 Nippon small Cap : 5000 3 PGIM flexi cap : 4000 4 Quant small cap : 4000 Tata small cap : 4000 im looking for next 25 Years what should be the worth of my Portfolio after 25 years

Ans: Hello, as I can see you have made a diversified portfolio of multiple categories of funds.
In order to retire you need to first figure out your monthly expenses at the time of retirement. This will tell you what exact corpus you need at the time. For example you need 1.5L per month after 7 years i.e 18L per year, you need a corpus of 18L/6% = 3Crs
In order to get to 3crs, your portfolio of 88L will grow to 1.94crs approx at 12% and the current sip figure will grow to 77L approx at 12 % making a total of 2.71crs. Which will be short of 29L of your target. Hence adjust your SIP amounts according to your goals.
In order to get enhanced returns, one should have a very focused portfolio of small caps , mid caps , large and mid caps , multi caps , maybe a consumption fund and a debt fund in case of emergencies.
Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.

Ans: Kindly understand that having an aggressive profile doesn't necessarily mean having a lot of Smallcap exposure. When you invest into Equities, your risk profile itself becomes high risk. Currently, you have exposure in 4 Smallcap funds. The entire Smallcap universe has 250 companies, while each well diversified MF has ~ 40-80 companies. Thus, there can be significant overlaps among them, therefore, can trim some exposure. You should also invest in Largecap/Midcap funds. Assuming a return of ~15%, your total corpus by the end of 25 years should be close to 10 crores.

Ans: It's fantastic that you're already thinking about retirement at 45. Life has a way of whizzing by, doesn't it? Having a 10-year plan towards a ?1 crore corpus for early retirement at 55 shows real foresight.

Now, looking at your portfolio with a mix of large, mid, and small-cap funds, it's clear you've diversified across market capitalizations. That's a smart approach! But with a goal ten years down the line, have you considered how much risk you're comfortable with? Remember, the ride might get bumpy closer to retirement, and you might want to consider a chat with a Certified Financial Planner (CFP). They can help you fine-tune your asset allocation to balance growth potential with stability as you near your retirement mark. Think of it like planning a trek to the Himalayas – you want the right gear for every stage of the climb!

Ans: Assessment of Current Portfolio
Your current mutual fund portfolio is well-diversified. It includes technology, flexi cap, mid cap, small cap, and balanced funds. Here’s a detailed assessment:

Mutual Fund Investments
ICICI Pru Technology Fund: Monthly SIP of Rs. 1000. This fund focuses on the technology sector. It can offer high growth but comes with sector-specific risks.

Parag Parikh Flexi Cap Fund: Monthly SIP of Rs. 3000 and a lump sum of Rs. 65000. This fund is diversified across large, mid, and small caps. It aims to achieve long-term growth.

ICICI Pru Bharat 22 FOF: Lump sum of Rs. 80000. This fund invests in the Bharat 22 Index, focusing on diversified sectors.

Motilal Oswal Mid Cap Fund: Lump sum of Rs. 70000. Mid cap funds can offer high returns but are more volatile than large cap funds.

Franklin India Focused Equity Fund: Lump sum of Rs. 60000. This matured fund is still held, focusing on a limited number of stocks.

Canara Robeco Small Cap Fund: Lump sum of Rs. 75000. Small cap funds have high growth potential but are very volatile.

ICICI Pru Equity FOF: Lump sum of Rs. 70000. This fund invests in other equity funds, offering diversified equity exposure.

ICICI Pru Balanced Advantage Fund: Lump sum of Rs. 50000. This fund balances between equity and debt, offering stability.

ICICI Pru Medium Term Bond Fund: Lump sum of Rs. 35000. This fund focuses on medium-term debt securities, providing steady returns with lower risk.

Portfolio Growth Potential
Current Portfolio Value: Rs. 8,52,645.

Gain/Loss: Rs. 2,22,677.

Strategic Recommendations
Increase Equity Exposure
Focus on Growth: Continue investing in equity mutual funds. They offer high growth potential over the long term.

Balanced Approach: Maintain a balance between large, mid, and small cap funds.

Reduce Sector-Specific Risk
Diversify Further: Avoid concentrating too much in one sector like technology. Spread investments across various sectors.
Regular Investments
SIPs and Lumpsums: Continue SIPs as much as possible. Invest lump sums when you receive them.

Consistency: Consistent investments help in rupee cost averaging and compounding.

Avoid Index Funds
Disadvantages: Index funds follow the market passively. They lack active management and can’t outperform the market.

Active Management Benefits: Actively managed funds have professional managers. They aim for higher returns by adapting to market conditions.

Drawbacks of Direct Funds
No Advisory Support: Direct funds lack guidance from certified planners. Regular funds offer professional advice.

Complex Management: Managing direct investments requires market knowledge. Regular funds managed by CFPs are more suitable.

Financial Goals and Liquidity
Goal Alignment
Long-Term Goals: Align your investments with your long-term goals. Focus on creating a corpus for your child’s education and your retirement.
Emergency Fund
Maintain Liquidity: Keep an emergency fund for unforeseen expenses. This should cover at least six months of expenses.
Health and Life Insurance
Personal Mediclaim
Buy Health Insurance: Purchase a personal health insurance policy. Ensure it covers critical illnesses and hospitalisation.
Life Insurance
Adequate Coverage: Ensure your term plan coverage is sufficient. This should meet your family’s needs in case of any eventuality.
Final Insights
Your portfolio is well-diversified and shows good growth potential. Focus on equity mutual funds for long-term growth. Avoid index and direct funds. Maintain consistency in SIPs and invest lumpsum amounts when possible. Align investments with long-term goals and ensure adequate insurance coverage.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in