Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |7029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Apr 24, 2024Hindi

Hi All, I am 40 years, currently investing in Nippon Small cap 2k, Kotak Small cap 2k, Parag Parikh flexi cap 7k, Mira Asset Large and Mid cap 7k, Kotak Emerging 2k, ICICI Value Discovery 1k, NPS 4K, Motilala Oswal Nasdaq 100 FOF 1K My Goal is 10cr at retirement at age of 60. Need to know can I achieve with above mentioned investing portfolio.

Ans: Review of Current Portfolio:

Your investment portfolio reflects a diversified approach with exposure to small-cap, flexi-cap, large & mid-cap, emerging companies, value discovery, international, and NPS funds. Given your age of 40 and retirement goal of 10 crores at age 60, let's assess the potential of your current portfolio.

Analysis:

Equity Funds:
Nippon and Kotak Small Cap, Kotak Emerging: Small-cap and emerging companies have potential for higher growth but come with increased volatility. Given your aggressive stance, these funds align well with your growth objective.
Parag Parikh Flexi Cap, Mirae Asset Large and Mid Cap: These funds offer diversified exposure across market caps, providing a balanced approach to growth and stability.
ICICI Value Discovery: This fund follows a value-oriented approach, emphasizing undervalued stocks with potential for growth.
International and Specialized Funds:
Motilal Oswal Nasdaq 100 FOF: This fund offers exposure to the top 100 companies listed on the Nasdaq stock exchange, focusing on technology and innovation-driven companies. Given its growth potential, it can complement your domestic equity holdings.
NPS:
NPS Contribution: Regular contributions to NPS can provide tax benefits and long-term retirement savings. Ensure your asset allocation within NPS aligns with your risk profile and retirement goals.
Analysis for Retirement Goal:

To achieve a corpus of 10 crores in 20 years (by age 60), consider the following:

Expected Returns:
While equity funds historically offer higher returns compared to other asset classes, it's essential to be realistic about your expected returns. A balanced approach with an average annual return expectation can be around 10-12% over the long term.
Regular Contributions:
Regularly review and increase your contributions over time to benefit from the power of compounding. Consider adjusting your contributions based on your income growth and investment opportunities.
Periodic Reviews:
Periodically review your portfolio's performance and adjust your strategy based on market conditions, ensuring alignment with your retirement goal.
Conclusion:

While your current portfolio reflects a diversified approach with potential for growth, achieving a corpus of 10 crores in 20 years requires disciplined investing, regular contributions, and a balanced approach to risk and return.

Consider maintaining a diversified portfolio aligned with your risk tolerance and retirement goals. Regular reviews and adjustments to your portfolio, along with disciplined contributions, can help navigate market dynamics effectively and work towards achieving your retirement goal.

Consulting with a Certified Financial Planner can help personalize your investment strategy, ensuring alignment with your long-term goals and risk tolerance. Embrace this investment journey with confidence, discipline, and patience, aiming to achieve your financial aspirations over time.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.