I am 39 years old and want to build a corpus of 2 crore in the next 10 years. Currently investing 60K monthly in the following plans. Plan to increase this to 70-75K monthly, so pls do suggest some good funds

Mirae Asset Healthcare Fund - Direct Plan (G) - ₹2500

Kotak Small Cap Fund - Direct Plan (G) - 2500
UTI Flexi Cap Fund - Direct Plan (G) - 2500
Parag Parikh Flexi Cap Fund - Direct Plan (G) - 5000
DSP Mid Cap Fund - Direct Plan (G) - 2500
Axis Focused 25 Fund - Direct Plan (G) - 2500
JM Tax Gain Fund - Direct Plan (G) - 2500
Quant Tax Plan - Direct Plan (G) - 5000
Axis Bluechip Fund - Direct Plan (G) - 2500
Motilal Oswal Focused 25 Fund - Direct Plan (G) - 2500

Ans: Please continue with 1, 3, 6, 7, 8 and 9.

Yes, you may invest in Kotak Small Cap Fund -- Growth

You may consider a couple of schemes from below for further investments

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

Ans: Please continue; no need to add any more funds

Ans: Hello Vipul. You have apparently targeted a few AMCs and invested in their schemes despite the fact that the selected schemes are in line with the market. Instead, I suggest limiting AMC diversification as this could have a negative effect on portfolios due to overlapping holdings. Select one scheme per AMC.

A clear vision in allocating Debt, Hybrid, and Equity assets would also be helpful. If you invest 1 lakh as sip, your portfolio is over-diversified, the portfolio needs to be reshuffled and rebalanced.

Assuming your investment time horizon has begun now, since your past investment time horizon is not disclosed. It will also require sip investments of 1.91 lakh monthly to achieve a corpus of 5 crore in 10 years.

Ans: Given your investment horizon and goal of building a corpus of around 2 crore in 10 years, you may consider allocating your additional investment of 20k per month across a diversified portfolio of equity mutual funds. Look for funds with a track record of consistent performance, strong fund management, and a focus on growth-oriented sectors. Consider a mix of large-cap, mid-cap, and multi-cap funds to spread out your risk. It's essential to review your portfolio periodically and make adjustments as needed based on market conditions and your evolving financial goals. Consulting a financial advisor can provide personalized guidance.

Ans: Assessing Your Investment Plan

Lumpsum Investment: You plan to invest Rs 3 lakhs as a lumpsum.

Monthly SIP: You also want to invest Rs 10,000 monthly.

This combination of a lumpsum and SIP is a good strategy.

Expected Returns

Equity Funds: Typically, equity funds can give an average return of 12-15% annually.

Diversification: To reduce risk, diversify into different types of funds.

Advantages of Actively Managed Funds

Professional Management: Managed by experienced professionals.

Better Adaptability: Adjust investments based on market conditions.

Higher Returns Potential: Skilled managers aim to outperform the market.

Disadvantages of Index Funds

Limited Flexibility: Can't adapt quickly to market changes.

Market Fluctuations: More exposed to volatility.

Potential Lower Returns: May underperform actively managed funds.

Why Regular Funds Over Direct Funds

Expert Advice: Certified Financial Planners (CFPs) provide tailored advice.

Holistic Planning: Consider your overall financial situation.

Ongoing Support: Regular adjustments to your investment strategy.

Better Resources: Access to extensive research and tools.

Calculating the Corpus

Let's assess if your plan can reach your goal. With Rs 3 lakhs lumpsum and Rs 10,000 monthly SIP, you can potentially reach Rs 1 crore in 10 years.

Investment Strategy

Start with Lumpsum: Invest Rs 3 lakhs in a diversified equity fund.

Monthly SIP: Invest Rs 10,000 in a mix of equity and hybrid funds.

Review Regularly: Monitor your investments and adjust as needed.

Stay Invested: Long-term investments tend to yield better returns.

Important Considerations

Risk Tolerance: Equity investments carry risk. Be prepared for market fluctuations.

Time Horizon: Staying invested for the full 10 years is crucial.

Professional Advice: Consult a Certified Financial Planner for personalized guidance.

Final Insights

Ayan, your plan to invest Rs 3 lakhs as a lumpsum and Rs 10,000 monthly SIP is a strong start. With disciplined investing and proper fund selection, you can potentially reach your Rs 1 crore goal in 10 years. Diversify your investments, stay invested for the long term, and consult a Certified Financial Planner for tailored advice.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in